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Amazon Pays $1.5B Over Accidental Prime Sign-Ups
8 Jan
Summary
- Amazon issued $1.5 billion in refunds for accidental Prime sign-ups.
- Millions of customers are eligible for refunds up to $51 each.
- The settlement resolves issues with Prime sign-ups and cancellations.
Amazon has initiated the second phase of a massive $1.5 billion refund program for customers impacted by accidental Prime subscriptions. This initiative is a result of a settlement with the Federal Trade Commission concerning the company's practices around accidental sign-ups and subscription cancellations. Amazon has already disbursed funds to millions of customers and is now opening claims for an additional ten million Americans.
The settlement covers Prime subscriptions purchased between June 23, 2019, and June 23, 2025. Customers who attempted to cancel their Prime subscription during this period without success, or who were enrolled through Amazon's "Challenged Enrollment Flow"—such as during the checkout process for an order—are eligible. The maximum refund for each claimant is capped at $51.
As of late December, approximately $425 million had been disbursed automatically, with an average payout of around $32.50. If the total claims do not reach the settlement's $1 billion threshold, remaining funds beyond that amount will revert to Amazon. Should the total claims fall short of $1 billion, Amazon is obligated to conduct further payment rounds until that figure is met, with individual payouts still capped at $51.
