Amazon will refund millions with $2.5 billion in prime payment
Amazon will refund millions after resolving an FTC lawsuit over Prime subscription and cancellation issues.
For years, millions of Amazon Prime users in the US have felt trapped in a digital maze: automatic inscriptions, confused buttons, and a cancellation process that appears to be designed to run out of patience.
Currently, after the Federal Commerce Commission (FTC) historic demand, the company must pay $2.5 billion in refunds and fines.
The resolution comes after the FTC accused Amazon of registering customers on Prime without consent using a “subscription trap.” The company did not recognize liability, but the contract is attempting to halt practices, also known by senior executives, according to internal documents.
What is the agreement between Amazon and the FTC?
The agreement forces Amazon to pay consumers $1.5 billion in direct relief and $100 million in civil fines. According to the FTC, approximately 35 million customers can receive automatic refunds of up to $51, while other customers will have to file a claim. The agency will provide detailed instructions on how to verify eligibility for users over the next few weeks.
Additionally, Amazon needs to redesign the interface to provide a clear cancellation button, eliminate deceptive messages like “I don’t want free shipping” and clearly display the costs and terms of Prime. Independent supervisors monitor compliance with these changes.
How do I know if I’ll receive an Amazon Prime refund?
The FTC has reported that many clients will automatically receive payments, while others will have to request it. Those who believe they have been affected can review the agency’s official newsletter or visit FTC.gov/refunds to see if their account is included. This process does not require you to share your passwords or additional bank information.
What users advise is to pay attention to official FTC or Amazon emails and distrust third party messages requesting sensitive data. The agency emphasizes that it will not charge you a fee to process your refund.
What happens to the “click to cancel” rule?
The Amazon case has reinvigorated the debate over regulations that encourages cancellation of subscriptions nationwide. The proposed “cancellation of rules” for SO-Caled to eliminate the “junkrate” proposed by the Biden government was blocked before it came into effect by the court in July.
Under this rule, cancelling a subscription must be as simple as changes that affect gyms, streaming services, food delivery, and more. The current president of the FTC voted against the standard during the transition period, but the agency appreciates resuming the regulatory process.
Practical Tips for Cancelling a Difficult Subscription
New regulations have been defined, but PIRG consumer organizations recommend caution. Avoid free debit cards, read terminology before approval, save screenshots of each cancellation step, and act on program renovation reminders over time.
If a problem occurs, the user may file a complaint with the FTC at Reportfudud.ftc.gov. These actions can not only collect money, but also strengthen efforts to stop other companies’ misleading tactics.
What does this mean for future consumers?
This agreement lays precedents that could affect the entire online subscription sector. The FTC has investigated other companies that apply similar practices and confirmed that it will open the door to new legal action. For consumers, the message is clear. Subscriptions are transparent, easy to cancel and require no hidden fees.
Amazon claims that the process meets high transparency standards, but this case leaves behind a tech giant’s lesson.
Contribution: Use today
Boris Q’va is a national news reporter for Spanish trends on the Connect/USA Today network. You can follow him on X as @byborisqva or write to bbalsinsurquiola @gannet
