Amazon Prime $1 Billion Settlement: How to Check If You're Owed a Refund

Updated February 2026 · 6 min read

What Happened

In June 2023, the Federal Trade Commission sued Amazon in what it internally called "Project Iliad." The complaint alleged that Amazon used deceptive design patterns — known as "dark patterns" — to:

• Trick consumers into subscribing to Prime during checkout without clear consent
• Make cancellation intentionally confusing with a multi-step "Iliad flow" designed to retain members
• Ignore internal warnings — Amazon employees had flagged the manipulative design for years

The case was settled in September 2025. Amazon was required to pay $1 billion in civil penalties to the FTC and provide $1.5 billion in refunds to affected consumers.

Do You Qualify for a Refund?

You may be eligible if any of the following apply:

• You were enrolled in Prime without explicitly agreeing (e.g., during a regular Amazon purchase)
• You were charged after a free trial you didn't realize you signed up for
• You tried to cancel but were confused by the multi-step cancellation process
• You were re-enrolled after canceling

The FTC has been automatically issuing refunds to affected consumers. Check your email (including spam) for notices from the FTC. If you believe you qualify but haven't received a refund, you can file a complaint at reportfraud.ftc.gov.

How to Cancel Amazon Prime (Simplified Process)

As part of the settlement, Amazon was required to simplify its cancellation process. Here's the current process:

1. Go to amazon.com/mc (Manage Your Membership)
2. Click "End Membership"
3. Confirm cancellation (Amazon may offer a discount — you can decline)
4. Choose whether to end immediately or at the end of your billing period

Pro tip: If you cancel before your billing period ends, Amazon will refund the remaining days if you haven't used Prime benefits recently.

What This Means for Subscription Cancellation

The Amazon case exposed what consumer advocates have been saying for years: companies deliberately make cancellation harder than signup. While the FTC's broader "Click to Cancel" rule was blocked by courts in 2025, the Amazon settlement set an important precedent.

Key takeaways:

• Dark patterns are illegal — even if they're common, the FTC can and will act
• Companies must make cancellation easy — or face massive penalties
• You have rights — if a company makes it unreasonably hard to cancel, file an FTC complaint

Other Subscriptions That Are Hard to Cancel

Amazon isn't the only company that makes cancellation difficult. Based on our data from analyzing thousands of subscription cancellations, here are the worst offenders:

• Planet Fitness — requires certified letter or in-person visit
• Xfinity — aggressive retention with long hold times
• Adobe Creative Cloud — early termination fee up to 50% of remaining contract
• SiriusXM — phone-only cancellation with heavy upselling
• New York Times — chat-only cancellation with retention offers
• LA Fitness — certified letter or manager approval required

See our full Dark Patterns Hall of Shame →

How to Protect Yourself

1. Audit your subscriptions regularly. Upload your bank statement to JustCancel to get a complete picture of recurring charges.
2. Use virtual cards for free trials — they auto-expire so you can't be charged.
3. Document cancellation attempts. If a company makes it hard, screenshot everything — it may be useful for an FTC complaint or chargeback.
4. Request chargebacks for unauthorized charges. Your bank is required to investigate under the Fair Credit Billing Act.
5. Set calendar reminders before free trials end.

The Bottom Line

The Amazon Prime settlement is the largest subscription-related penalty in history. It proves that consumers have power — and that regulators are watching. If you're paying for subscriptions you don't use, now is the perfect time to audit your bank statement and cut the waste.