Amazon Subscription and Membership Class Action Lawsuit Latest Update, $2.5 Billion FTC Settlement and Prime Video Litigation
The Amazon subscription and membership class action involves claims against Amazon alleging deceptive billing practices through “dark patterns” that enrolled consumers in Prime memberships without consent and made cancellation deliberately difficult. A historic $2.5 billion FTC settlement mandates $1.5 billion in refunds to 35 million affected customers. Separate Prime Video class actions over $2.99 ad-free charges were dismissed. If you were charged for Amazon Prime between June 2019 and June 2025 through specific enrollment flows and used three or fewer Prime benefits annually, you may qualify for automatic refunds up to $51.
What Is the Amazon Subscription Class Action Lawsuit About?
Amazon faces two distinct categories of subscription litigation: the FTC enforcement action over Prime enrollment and cancellation practices, and separate class actions over Prime Video advertising charges.
FTC Prime Enrollment Case
The Federal Trade Commission filed suit in June 2023 alleging Amazon enrolled tens of millions of consumers in Prime subscriptions without their knowledge or consent using manipulative “dark patterns.” The FTC further claimed Amazon created a deliberately complex cancellation process to prevent subscribers from terminating memberships.
On September 25, 2025, Amazon reached a $2.5 billion settlement without admitting liability. The agreement requires $1 billion in civil penalties—the largest ever for an FTC rule violation—plus $1.5 billion in consumer refunds. Amazon must also cease unlawful enrollment and cancellation practices, implement clear opt-out options, provide transparent pricing disclosures, and create simplified cancellation procedures.
Prime Video Ad-Free Litigation
Separate class actions filed in February 2024 challenged Amazon’s decision to introduce ads to Prime Video unless subscribers paid an additional $2.99 monthly. Plaintiffs argued they purchased annual Prime memberships expecting ad-free streaming throughout their subscription periods based on Amazon’s decade-long marketing of “unlimited, commercial-free” content.
U.S. District Judge Barbara Rothstein dismissed these consolidated cases with prejudice in July 2025, ruling Amazon’s terms of service explicitly allowed benefit modifications in the company’s “sole discretion.” The judge determined adding ads constituted a permissible benefit change, not a price increase. Plaintiffs appealed to the Ninth Circuit in August 2025.
Which Amazon Services Are Involved?
The FTC settlement addresses Amazon Prime membership enrollment and cancellation practices across all Prime benefits, including:
Core Prime Services:
- Amazon Prime shipping benefits (free two-day shipping)
- Prime Video streaming
- Prime Music streaming
- Prime Reading
- Prime Gaming
- Photo storage
- Early access to deals and Lightning Deals
Challenged Enrollment Flows (June 23, 2019 – June 23, 2025):
- Universal Prime decision page
- Shipping selection page during checkout
- Single page checkout
- Prime Video enrollment flow
The Prime Video class actions specifically targeted the $2.99 monthly charge for ad-free streaming introduced in January 2024.
What Are the Allegations Against Amazon?
The FTC’s complaint detailed multiple deceptive practices Amazon allegedly used to trap consumers in Prime memberships.
Dark Patterns in Enrollment
Amazon’s checkout process presented numerous opportunities to subscribe to Prime at $14.99 monthly. The option to purchase items without Prime was deliberately harder to locate. In many cases, buttons presented to complete transactions failed to clearly state that clicking enrolled consumers in recurring Prime subscriptions.
Internal Amazon documents revealed executives discussed these practices with awareness of their deceptive nature. One employee described subscription tactics as “a bit of a shady world.” Another acknowledged leading consumers to unwanted subscriptions was “an unspoken cancer.”
The “Iliad Flow” Cancellation Process
Amazon internally named its cancellation process the “Iliad Flow”—a reference to Homer’s epic poem about the decade-long Trojan War—acknowledging its deliberately cumbersome design.
The process required consumers to navigate four pages, make six clicks, and evaluate 15 options before completing cancellation. This contrasted sharply with one-click Prime enrollment.
Specific dark pattern tactics included:
- Roach motel design: Easy to enter, nearly impossible to escape
- Confirm-shaming: Exploiting loss aversion by warning consumers they would lose benefits
- Misleading buttons: Final cancellation pages displayed five options, only one of which—”End Now”—actually canceled membership. Other buttons ejected users from the cancellation flow
- Buried cancellation option: Finding the initial cancellation path required navigating through multiple menu layers where it was deliberately obscured
- Redundant confirmation: Forcing users to repeatedly confirm cancellation decisions through vague warnings and alternative offers
Internal documents showed the Iliad Flow reduced Prime cancellations by 14% in 2017 as fewer members successfully reached the final cancellation page. Amazon leadership rejected changes that would simplify cancellation because they adversely affected revenue.
What Evidence Supports the Claims?
The FTC case relied on extensive documentary evidence, consumer testimony, and expert analysis.
Internal Amazon Documents
Discovery revealed emails and strategy documents where Amazon executives explicitly discussed the deceptive nature of enrollment practices and cancellation obstacles. Comments included acknowledgments that subscription tactics operated in “a bit of a shady world” and that leading consumers to unwanted subscriptions represented “an unspoken cancer.”
Project documents showed Amazon A/B tested enrollment and cancellation flows to maximize subscription rates and minimize cancellations, prioritizing revenue over consumer choice.
Consumer Complaints
The FTC gathered testimony from consumers who enrolled in Prime without intending to subscribe. Many reported not understanding they were agreeing to recurring charges when completing checkout. Others described frustration navigating the Iliad Flow, with some giving up mid-cancellation when confronted with multiple pages of retention offers.
Comparative Analysis
Experts demonstrated the stark asymmetry between enrollment and cancellation. Prime enrollment required a single click, while cancellation demanded navigating four pages, six clicks, and 15 options. This disparity evidenced deliberate design to trap consumers.
A/B Testing Results
Amazon’s internal testing showed cancellation rates increased whenever the company simplified the process. Each time executives observed this effect, they rolled back simplifications to preserve revenue—demonstrating conscious awareness their complex process deterred legitimate cancellations.
What Do Plaintiffs Need to Prove?
FTC Enforcement Action
The FTC brought claims under Section 5(a) of the Federal Trade Commission Act, prohibiting deceptive consumer practices, and Section 4 of the Restore Online Shoppers’ Confidence Act (ROSCA), which specifically addresses e-commerce subscription disclosures.
The FTC had to establish:
- Amazon’s enrollment disclosures were not “clear and conspicuous”
- Amazon failed to obtain “express informed consent” before charging consumers
- Amazon’s cancellation procedures violated consumer protection standards by deliberately obstructing cancellation attempts
Prime Video Class Actions
Plaintiffs in the Prime Video cases needed to prove:
- Breach of contract: Amazon’s terms prohibited mid-subscription price increases or benefit modifications
- False advertising: Amazon’s historical marketing of “commercial-free” streaming created reasonable consumer expectations
- Consumer protection violations: Adding ads constituted deceptive practices under state consumer protection laws
The court rejected these arguments, finding Amazon’s terms explicitly allowed benefit modifications “in its sole discretion” and that adding ads constituted a permissible change, not a contractually prohibited action.
Who Can File an Amazon Subscription Class Action Claim?
Automatic Refund Eligibility (FTC Settlement)
You qualify for automatic refunds up to $51 if you meet all three requirements:
- US Prime Customer: You were an Amazon Prime customer in the United States
- Challenged Enrollment: You signed up for Prime through one of four challenged enrollment flows—universal Prime decision page, shipping selection page, single page checkout, or Prime Video enrollment flow—between June 23, 2019 and June 23, 2025
- Limited Benefit Usage: You used three or fewer Amazon Prime benefits (including Prime Music or Prime Video products offered free to Prime subscribers) in any 12-month period following enrollment
Claims Process (2026)
If you did not receive an automatic refund but believe you qualify, Amazon will begin a claims process in 2026 for eligible customers who:
- Were enrolled in Prime through challenged flows
- Used more than three but fewer than ten Prime benefits in a 12-month period
- Can demonstrate they enrolled without informed consent or faced unreasonable cancellation obstacles
Documentation to Preserve:
- Amazon account order history showing Prime enrollment dates
- Email confirmations of Prime charges
- Credit card or bank statements showing Prime subscription fees
- Communications with Amazon customer service about enrollment or cancellation difficulties
Who Does NOT Qualify:
Consumers who actively used Prime benefits extensively do not qualify. The refund targets consumers the FTC determined were enrolled without informed consent and did not meaningfully use the service.
What Damages Can Consumers Recover?
FTC Settlement Refunds
Eligible consumers receive refunds of Prime subscription fees up to $51 maximum. The specific amount depends on how many Prime charges consumers paid during the challenged period while meeting the limited-benefit-usage requirement.
Between November 12, 2025 and December 24, 2025, Amazon issued automatic refunds via:
- PayPal or Venmo (claimants must accept within 15 days)
- Check mailed to default shipping address if digital payment is not claimed
Prime Video Class Actions
The dismissed Prime Video cases sought:
- Refunds of the $2.99 monthly ad-free charges
- Damages for breach of contract
- Restitution under state consumer protection laws
- Punitive damages
- Injunctive relief to prevent future changes
Because these cases were dismissed with prejudice after three attempts to state viable claims, plaintiffs cannot recover damages through this litigation. The Ninth Circuit appeal remains pending as of December 2025.
Recent Settlement Developments and Trial Outcomes
September 2025: Historic $2.5 Billion FTC Settlement
Three days into trial, Amazon settled the FTC case for $2.5 billion—one of the largest consumer protection settlements in history.
FTC Chairman Andrew Ferguson stated: “Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel. The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”
The settlement includes:
- $1 billion civil penalty (largest ever for FTC rule violation)
- $1.5 billion in consumer refunds to estimated 35 million affected customers
- Permanent injunction barring unlawful enrollment and cancellation practices
- Independent third-party compliance monitoring
Settlement Requirements:
Amazon must implement significant operational changes:
- Provide clear and conspicuous option to decline Prime during checkout
- Disclose all material terms—price, auto-renewal, benefits—at enrollment
- Obtain express informed consent before charging subscription fees
- Create simplified cancellation process comparable to enrollment ease
- Eliminate manipulative “dark patterns” including misleading buttons stating “No, I don’t want Free Shipping”
- Present pricing, renewal terms, and cancellation options clearly at enrollment
The injunction applies to Amazon for ten years but only binds individual executives (Senior Vice President Neil Lindsay and Vice President Jamil Ghani) for three years. The executives face no individual monetary penalties.
November-December 2025: Automatic Refunds Issued
Amazon began distributing automatic refunds on November 12, 2025. Millions of eligible customers received emails directing them to claim refunds via PayPal or Venmo. Those ignoring the digital payment option received checks at their registered Amazon shipping addresses.
The FTC emphasized consumers should not respond to unsolicited contacts claiming to facilitate refunds, as scammers exploit the settlement. The FTC will never contact consumers about refunds or request payment to process claims.
July 2025: Prime Video Class Actions Dismissed with Prejudice
U.S. District Judge Barbara Rothstein dismissed consolidated Prime Video class actions after plaintiffs’ third attempt to state viable claims.
The court ruled: “It is undisputed that Amazon never promised Prime subscribers—in writing or otherwise—that its streaming service was, or would remain, ad-free.” Amazon’s terms of service explicitly allowed the company to modify Prime benefits “in its sole discretion,” including adding advertisements.
The judge determined introducing ads constituted a benefit modification, not a price increase. Subscribers who paid no additional fees experienced no price change. Only those voluntarily opting into the $2.99 ad-free tier incurred additional costs.
Because plaintiffs filed three substantially similar complaints using the same legal theories, the court dismissed the case with prejudice, preventing further amendments.
August 2025: Ninth Circuit Appeal Filed
Plaintiffs appealed Judge Rothstein’s dismissal to the Ninth Circuit Court of Appeals. As of December 2025, the appeal remains pending without substantive briefing.
May 2024: Court Denies Amazon’s Motion to Dismiss FTC Case
U.S. District Judge John Chun rejected Amazon’s arguments for dismissal, allowing the FTC case to proceed to trial. The court found the FTC adequately alleged Amazon engaged in dark patterns that violated consumer protection laws.
Judge Chun’s ruling established:
- “Clear and conspicuous” disclosure requirements are context-driven, making early dismissal difficult
- “Express informed consent” imposes a high bar companies must meet
- Cancellation process legality can be judged by comparing it to enrollment procedures
- Individual executives can face personal liability for subscription dark patterns
This ruling increased pressure on Amazon to settle, as it faced a jury trial with substantial evidence of executive awareness of deceptive practices.
Statute of Limitations
The FTC settlement resolves claims for the period June 23, 2019 through June 23, 2025. Consumers who were enrolled in Prime during this period through challenged flows and meet eligibility requirements can participate in the settlement process.
General Statute of Limitations for Consumer Protection Claims:
State consumer protection claims typically carry 2-4 year limitations periods:
- California: 4 years for unfair competition claims; 3 years for fraud
- New York: 3 years for deceptive practices
- Washington: 3 years for Consumer Protection Act violations
- Texas: 2 years for deceptive trade practices
- Florida: 4 years for statutory consumer claims
The discovery rule applies in most states, meaning the statute begins when consumers discovered or reasonably should have discovered the deceptive practice—not necessarily when they enrolled in Prime.
For Prime Video class actions, plaintiffs claimed the relevant period began when Amazon introduced ads in January 2024. The dismissal with prejudice forecloses further state-level class actions on identical theories unless distinguishable facts emerge.
How to Determine If You Qualify
Step 1: Check Automatic Refund Eligibility
Review whether you received an email from Amazon between November 12, 2025 and December 24, 2025 regarding an FTC settlement refund. If you received this email and meet the three eligibility criteria, claim your refund via PayPal or Venmo within 15 days. If you ignore the email, Amazon will mail a check.
Step 2: Verify Your Enrollment Method
Log into your Amazon account and review your Prime membership history. Determine whether you enrolled through one of four challenged flows:
- During checkout when selecting shipping options
- Through the universal Prime landing page
- Via single-page checkout
- When signing up for Prime Video
If you enrolled by calling customer service, using a third-party promotion, or through employer-provided Prime benefits, you do not qualify under the challenged enrollment flows.
Step 3: Calculate Prime Benefit Usage
Review your Amazon order history, Prime Video viewing history, and Prime Music listening history. Count how many different Prime benefits you used in each 12-month period following enrollment.
For automatic refunds, you must have used three or fewer benefits in any 12-month period. Benefits include:
- Ordering items with Prime shipping
- Watching Prime Video content (excluding purchased/rented titles)
- Listening to Prime Music
- Using Prime Reading
- Accessing Prime Gaming benefits
- Using Prime photo storage
Heavy Prime users who regularly ordered items, watched videos, and used multiple services do not qualify because they actively benefited from the membership.
Step 4: Monitor for 2026 Claims Process
If you did not receive an automatic refund but believe you were enrolled without informed consent or faced unreasonable cancellation obstacles, wait for Amazon to announce its 2026 claims process. The FTC will update www.ftc.gov/Amazon when the process begins.
Step 5: Avoid Scams
The FTC will never contact you about refunds. No legitimate party will request payment or personal information to process your claim. All refunds are automatic or processed through the official settlement administrator.
Contact information for legitimate inquiries:
- Email: [email protected]
- Website: www.SubscriptionMembershipSettlement.com
Frequently Asked Questions
Do I need to do anything to get my refund?
If you qualify for an automatic refund, Amazon will email you between November 12, 2025 and December 24, 2025. Accept the PayPal or Venmo payment within 15 days. If you ignore the email, Amazon automatically mails a check to your registered shipping address. Cash checks within 60 days.
How much will I receive?
Eligible consumers receive up to $51 maximum, representing refunded Prime subscription fees paid during the challenged period while meeting the limited-benefit-usage requirement. The exact amount varies based on individual circumstances.
I use Prime all the time. Why don’t I qualify?
The refund targets consumers the FTC determined were enrolled without informed consent and did not meaningfully use Prime benefits. If you actively used Prime shipping, watched Prime Video regularly, and benefited from the membership, the FTC considers you received value for your subscription fees.
What if I didn’t get an automatic refund but think I should qualify?
Wait for Amazon’s 2026 claims process for consumers who did not receive automatic payments. The FTC will update ftc.gov/Amazon when the process begins. Do not contact anyone claiming to expedite your refund—this is a scam.
Can I still cancel my Prime membership?
Yes. As part of the settlement, Amazon implemented a simplified cancellation process. You can now cancel Prime more easily than the previous Iliad Flow required. Visit your Amazon account settings and follow the streamlined cancellation options.
What happened to the Prime Video ad class action?
Federal courts dismissed the Prime Video class actions with prejudice in July 2025, finding Amazon’s terms of service allowed benefit modifications including adding advertisements. Plaintiffs appealed to the Ninth Circuit in August 2025. The appeal remains pending as of December 2025.
Is Amazon admitting wrongdoing?
No. Amazon settled the FTC case without admitting liability. An Amazon spokesperson stated: “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers.”
Will there be more subscription-related lawsuits against Amazon?
The FTC settlement and compliance monitoring reduce the likelihood of future federal enforcement actions on identical Prime enrollment and cancellation issues. However, state attorneys general or private plaintiffs could bring distinct claims if new deceptive practices emerge.
Key Takeaways
The Amazon subscription and membership class action represents a watershed moment in consumer protection enforcement against subscription “dark patterns.” The $2.5 billion FTC settlement—including $1.5 billion in refunds to 35 million consumers—demonstrates regulatory scrutiny of manipulative enrollment and cancellation practices.
Eligible consumers enrolled in Prime through challenged flows between June 2019 and June 2025 who used limited Prime benefits may receive automatic refunds up to $51. Amazon issued these refunds between November 12 and December 24, 2025 via PayPal, Venmo, or mailed checks.
The settlement requires Amazon to implement lasting changes: simplified cancellation procedures comparable to enrollment ease, clear Prime opt-out options during checkout, transparent pricing and auto-renewal disclosures, and elimination of manipulative dark patterns.
Separate Prime Video class actions over $2.99 ad-free charges were dismissed with prejudice in July 2025. Courts ruled Amazon’s terms of service explicitly allowed benefit modifications. The Ninth Circuit appeal remains pending as of December 2025.
Consumers should verify their eligibility by reviewing Amazon emails received between November 12 and December 24, 2025. Those who did not receive automatic refunds should monitor ftc.gov/Amazon for information about the 2026 claims process. Avoid scams—the FTC will never contact you about refunds.
The case establishes important precedent for subscription services industry-wide. Following the FTC’s August 2024 Click-to-Cancel Rule and this landmark Amazon settlement, companies offering subscription services face heightened compliance requirements and enforcement risk for manipulative enrollment and cancellation practices.
This article provides general information about Amazon subscription class actions and should not be considered legal advice. Consult a qualified attorney to evaluate your specific situation.
Official Resources:
- FTC Amazon Refunds: www.ftc.gov/Amazon
- Settlement Administrator: www.SubscriptionMembershipSettlement.com
- Email: [email protected]
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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