Amazon subscribers have received good news. Nearly 35 million people will receive a refund for their Amazon Prime subscriptions, after Amazon was accused by the Federal Trade Commission (FTC) of using deceptive methods to enroll customers in the Prime service. FTC Chairman Andrew Ferguson explained in a statement that Amazon not only manipulated users into subscribing to Prime but also made it overly difficult to cancel this service. As a result, it will have to return a total of $1.5 billion directly to customers.
According to information provided by CNN, to be eligible for the refund, the customer must reside in the United States and have subscribed to Amazon Prime between 2019 and 2025. For its part, Amazon maintains and asserts that it has always acted within the law and that its subscription policies were clear, as stated by spokesperson Mark Blafkin. However, there are internal documents that show that this was not the common sentiment, and that the process was even referred to as ‘Iliad’ because of how it confused and frustrated clients.
Amazon
Founded by Jeff Bezos in 1994, Amazon is one of the largest technology and online retail multinational companies in the world, offering e-commerce, cloud computing services (AWS), digital streaming, and online advertising. What started as a virtual bookstore has become an almost endless catalog of products, as well as the Prime subscription, which offers additional privileges, as free shipping. Series, movies, documentaries, books, music… The offerings that Amazon has achieved cover practically all areas.
Bad news for Amazon
Precisely their Prime subscription is what has led them to this situation. Amazon has been accused by the Federal Trade Commission (FTC) of using “deceptive methods” to get customers to subscribe to Prime. In addition to that, they also made it practically impossible to unsubscribe, complicating the process. According to Andrew Ferguson, chairman of the FTC, evidence was provided that “showed that Amazon used sophisticated subscription traps designed to manipulate consumers into signing up for Prime, and then made it extremely difficult for consumers to cancel their subscription. Today, we are putting billions of dollars into the pockets of Americans and ensuring that Amazon never does this again”.
Refunds to Prime users
A total of $1.5 billion has finalized the agreement between Amazon and the FTC, and this will be the amount refunded directly to affected users. Not every Prime subscriber is eligible for this refund; they must be a resident of the United States and have registered for Prime or unsuccessfully attempted to cancel their subscription between June 23, 2019, and June 23, 2025.2
Refunds
Depending on how the subscription was made, different refunds will be issued.
- Automatic refund within 90 days. This will be for those who enrolled through a “questionable sign-up flow” and did not use more than three Prime benefits over the course of a year.
- Requires a claim. Those who subscribed voluntarily or unsuccessfully attempted to cancel their subscription will need to file a claim. They will receive an email or a letter from Amazon. After receipt, you will have 180 days to return the claim form via email, prepaid mail, or the claims website.
What does Amazon say about this?
At all times, the company maintains that it has operated within the law. Although internal documents showed that this was not a common sentiment, and even referred to the subscription process as ‘Iliada’ because it was confusing and frustrating, the multinational claims to have a transparent subscription method. Some employees told the FTC that “subscription driving is a bit of a dark world’ or that directing customers to unwanted subscriptions was ‘a tacit cancer'”.
For its part, the company spokesman Mark Blakfin stated, “We work very hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value to our many millions of loyal Prime members worldwide. “We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years,” he added. “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers”.