Unsubscribing from an app is an arduous process. But Amazon took the gold medal, exhausting many users. For that reason, Jeff Bezos’ company will have to pay $2.5 billion (about €2.14 billion) in fines and refunds, due to consumer complaints. The FTC alleged that approximately 35 million consumers were tricked into subscribing to Prime and that the cancellation process was confusing and complex. Now, the law rules in favor of users.
The resolution makes the compensation effective, in addition to modifying the Prime cancellation process, in order to resolve the lawsuit
This marks a turning point for future cases or regulations regarding other subscription cancellation apps. An FTC press release specifically argued that this was an “unwanted Prime subscription” or “deferred cancellation.” From there, the resolution makes the compensation effective, in addition to modifying the Prime cancellation process, in order to resolve a lawsuit filed by the U.S. Federal Trade Commission (FTC).
The e-commerce giant will pay $1 billion in civil penalties and reimburse its customers $1.5 billion to resolve allegations
In any case, and despite the lawsuit being ruled in favor of consumers, Amazon has not admitted any wrongdoing in the case and last month issued a statement stating that it “has always complied with the law by working incredibly hard to make it clear and easy for customers to sign up for or cancel their Prime membership.” The e-commerce giant will pay $1 billion in civil penalties and reimburse its customers $1.5 billion to resolve allegations that it misled millions of customers into signing up for Prime.
The amount of payment per person will depend on the total membership fees paid
The FTC, the agency responsible for enforcing antitrust and consumer protection laws, has reported that nearly 35 million users were affected by this case. The group sued Amazon and three executives in 2023, alleging that the company’s policies violated a 2010 consumer protection law designed to protect online shoppers. In any case, the amount of payment per person will depend on the total membership fees paid during their subscription.
With Prime memberships, users can access deals and discounts, which leads them to buy more
Customers are informed that initially they won’t need to do anything to claim the money. It has been established that distributions are sent to Prime members who subscribed between June 23, 2019, and June 23, 2025. The FTC’s case against Amazon focused on Prime subscriptions, which are key to the company’s bottom line, as these customers spend more money and shop more frequently than non-members. Considering that with Prime memberships, users can access deals and discounts, which leads them to buy more, this also means that since they pay for the subscription, they take advantage of it to maximize their profit. In any case, for the “victims” in this case, there is a maximum distribution amount established by court order of $51 per person.
Eligible applicants must have used their benefits three or fewer times during any 12-month enrollment period
Specific cases will be reviewed, as users who have “fallen” into this Amazon scam, as many call it, will have to meet certain requirements to ensure the veracity of their cases. On the one hand, eligible applicants must have used their benefits three or fewer times during any 12-month enrollment period. On the other hand, they must have unsuccessfully attempted to cancel their membership or signed up for Prime through a contested enrollment process, according to court documents. The cases will be reviewed in detail, and the funds will begin to be distributed in the coming weeks.
