At the center of the dispute were claims that Amazon misled customers into signing up for Prime memberships and created barriers that made cancellations unnecessarily complicated. The case was tied to the Restore Online Shoppers’ Confidence Act, a law established in 2010 to protect consumers from unexpected online charges. Although Amazon maintained it would prevail if the case went to trial, the company chose a settlement to avoid years of litigation and appeals.
Refunds will be distributed to an estimated 35 million people affected by unwanted Prime enrollments or delayed cancellations. Some customers will receive automatic refunds if they meet specific requirements. Automatic eligibility applies to those who signed up through a challenged enrollment flow between June 23, 2019, and June 23, 2025, and used no more than three Prime benefits during any 12-month period. These refunds will be issued within 90 days of the settlement order.
Other customers may qualify but will not be reimbursed automatically. To claim refunds, these individuals must demonstrate they enrolled through a challenged process or attempted unsuccessfully to cancel their subscription. They also must not have used more than 10 Prime benefits during any 12-month period of their membership.
Following the completion of automatic payouts, claim forms will be sent to eligible consumers within 30 days. Recipients will then have 180 days to submit their claims either electronically, by prepaid First-Class mail, or through the settlement website. Amazon will review each submission and has 30 days to decide whether a claim is valid.
The settlement identifies several problematic sign-up processes described as challenged enrollment flows. These include the Shipping Option Select Page, Prime Video sign-up steps, and the Single Page Checkout process, all of which were flagged as confusing or misleading for customers.
Refunds will equal the total Prime membership fees paid during the disputed subscription period, capped at $51 per person. Those submitting valid claims for unintentional enrollment will also be refunded up to the same maximum. While the refund amount may appear modest, the settlement covers tens of millions of accounts, creating a massive overall payout.
As part of the agreement, Amazon must also launch a settlement website to provide instructions, claim forms, and timelines for customers seeking refunds. In addition, the company is required to improve transparency in its enrollment process and make cancellations more straightforward in the future.
For consumers, this settlement is an opportunity to recover money from memberships they may not have intended to keep. For Amazon, it represents a costly resolution and a push to address longstanding criticism of its subscription practices.
Customers who may qualify for refunds are encouraged to watch for communication regarding the settlement and to visit the upcoming website for details. With automatic refunds expected within 90 days and additional claims processed thereafter, most affected individuals should receive their money within the year.
