35 Million Prime Members Entitled to Amazon Payouts

Some 35 million Amazon Prime customers will soon be receiving money as part of a sweeping class action settlement over the company’s membership procedures. Federal regulators claim Amazon employed deceptive designs that nudged people into Prime and made it hard to leave. The settlement includes a $1.5 billion fund for consumer refunds and a $1 billion civil penalty — the latter labeled as the largest ever imposed by the Federal Trade Commission, which has authority over such FTC rule violations.

If you think you might qualify, your immediate question likely would be how much support you could get. Exact reimbursements for any given customer will vary based on how much Prime you used and for how long, but most affected customers will receive individual payments of up to $51. Here’s what you need to know about eligibility, payouts and next steps.

What you will get from the Amazon Prime settlement

Payments will be capped at roughly $51 for each eligible customer, although not all will receive the full amount. Refunding formulas, however, take into account the degree to which you used Prime during the period in issue. If you relied heavily on free shipping or streaming, your share may be less than that of someone who hardly used the service at all.

Settlements of this kind are usually distributed pro rata — in other words, the total pot for consumers gets divided up among all valid claims and automatic reimbursements. The average payout can change as more people become eligible. The figure isn’t the same for everyone, of course.

Who qualifies for payouts in the Amazon Prime case

The FTC, in its complaint, said that a number of people may be eligible for restitution:

Notably, those who filed reports include:

• Prime subscribers who were enticed by misleading designs that withheld costs or renewal terms.
• Shoppers who tried to purchase a less expensive Prime Video-only plan, but wound up in a full Prime membership that renewed automatically.
• Users who attempted to cancel but encountered needlessly strong friction, such as multi-step flows and design patterns that buried the exit option.

Millions of people who signed up for Prime since 2019 are due automatic refunds if they fall into the classes outlined by regulators. Other shoppers who think they were hurt may be required to file claims when the official process begins.

How to claim your share of the Amazon Prime payouts

Many customers will receive automatic refunds, according to Amazon’s records. If you are not one of those automatically identified, you will get to file a claim when the settlement administrator opens up its portal. You will need to confirm your identity and the associated Amazon account email used for Prime. Save anything you’ve got — billing documents or cancellation attempts, for example — to show up in court with.

Keep an eye out for official notices in the mail or statements via email. They will be sent by a court-appointed claims administrator — not through random solicitations. Watch out for phishing emails, too; in a legitimate email you’ll be directed specifically to reference the settlement and there are instructions provided on how to access a secure claims site, and they won’t ask for your password or full payment card number.

Why the Amazon Prime dark patterns case matters now

Regulators say Amazon employed “dark patterns” — interface design decisions that guide users toward a business outcome without broadly communicating what it is and obtaining consent. Among the FTC’s allegations were sign-up funnels in which links to decline or cancel Prime were smaller than those to accept it, and a cancellation path that featured multiple steps. Consumer advocates, including the Norwegian Consumer Council in earlier reports on subscription traps, have warned for years that these designs can nudge people to make decisions they would not otherwise — a more troubling reality in markets like gambling and adult entertainment.

The scale is enormous. Industry researchers like Consumer Intelligence Research Partners have pegged U.S. Prime membership at more than 150 million. This case is closely watched because, with tens of millions potentially eligible for relief, it is a bellwether of how subscription platforms present choice, disclosures and consent.

What Amazon says versus what changes under the settlement

Amazon has said it disputes claims, that its sign-up and cancellation flows are transparent, and that it complies with the law while offering strong value to members. As part of the settlement, the company will be subject to new compliance requirements; these may include better disclosures, explicit consent for enrollments and renewals and an easier way to cancel. The FTC has cast such requirements as a way to let consumers easily and painlessly opt in — or opt out, if you look at it that way.

What to do now to prepare for Amazon Prime payments

Check the email address that is linked to your Amazon account and your physical mail for a formal notice. If you’re informed that you qualify for an automatic refund, there may be nothing more to do. If a claim is assigned, then submit the claim before the deadline shown in the notice and follow the instructions for payment method selection.

Watch for any coverage that includes announcements by the F.T.C. and the court-appointed administrator on the claims window. Keep copies of anything you submit and all confirmation messages. If you think this includes you, but still don’t receive a notice, keep an eye on the public claims page when it opens and look at your eligibility and in case additional documents are being requested or not being provided.

Bottom line: If you use Prime, or tried to quit it, you might be due cash. The number could go as high as $51 for some, but will vary depending on the person. The earlier you verify your status and follow the official guidance, the more likely it is that you would actually receive money.