Amazon agreed to a whopping $2.5 billion settlement with the Federal Trade Commission (FTC) last week over allegedly "deceptive" practices in signing up users to its paid Amazon Prime subscription service.
Out of that settlement, Amazon will pay a $1 billion civil penalty to the U.S. government. The other $1.5 billion? That's the Consumer Fund, and it's going to be used to refund Amazon Prime customers who were affected by these practices.
According to the settlement terms, an estimated 35 million customers are entitled to that $1.5 billion pool, which would amount to a refund of $42.86 per person if distributed evenly. That's not an earth-shattering chunk of change, but free money is free money.
Who gets a refund from the Amazon-FTC settlement?
The FTC's lawsuit against Amazon, which resulted in the settlement, focused on Amazon's Prime subscription service. The FTC alleged that Amazon intentionally used deceptive designs, also known as dark patterns, to get users to sign up for the paid service and then made it difficult for customers to cancel their subscription.
But that doesn't mean everyone who signed up for Amazon Prime is eligible.
First, an Amazon user needs to have signed up for Prime between June 23, 2019 and June 23, 2025. In addition, the Prime subscription must have been made via one of the "challenged enrollment flows."
Basically, a user needed to sign up for Prime through one of those offending designs. Per the FTC, these allegedly deceptive Amazon Prime sign-up designs include the Universal Prime Decision Page, the Shipping Option Select Page, the Prime Video enrollment flow, or the Single Page Checkout. For example, on the Shipping Option Select Page, a user could've chosen the free shipping option without realizing that this would automatically sign them up for an Amazon Prime membership.
Furthermore, the consumer needs to have used their Prime benefits, which include free Prime shipping, no more than three times within 12 months of signing up for Prime.
How to get a refund from the Amazon-FTC settlement
There are two ways consumers will be compensated. First, consumers who meet the previous requirements will receive a payout automatically within 90 days, capped at $51. There is no sign-up or opt-in required. Amazon will just refund anyone who's eligible.
After those refunds go out, Amazon will then open a new round of payouts. The e-commerce giant will send out a claims form within 30 days to other customers who are eligible for a refund. The consumers eligible in this round include those who signed up via one of the challenged enrollment flows and also used up to 10 Prime benefits in a 12-month period. Consumers will have 180 days to fill out the claim form and submit it. Amazon will then issue those refunds within 30 days after a review of the claim.
If Amazon has paid out less than $1 billion after this second payout process with the claim forms, then the company must continue to make another tier of customers eligible for a refund. For example, the next group would be anyone who did not submit a claim form, signed up for Prime through a challenged enrollment flow, but used up to four of their Prime benefits. The next eligible group would be those who used up to five of their Prime benefits.
This would continue until at least $1 billion is paid out of the Consumer Fund.
