The FTC settlement requires Amazon to make cancellation simpler and clearer about what Prime actually costs
In 2023, the Federal Trade Commission (FTC) reached a settlement with Amazon over how the company signed people up for Prime and made it hard to cancel. Amazon agreed to change its practices, which means if you have Prime or are thinking about signing up, the process works differently now. The main changes: Amazon must show you the full cost and cancellation terms before you pay, and it must let you cancel through the same method you used to sign up — usually one or two clicks instead of navigating a phone menu or finding a buried link.
This settlement does not give money back to past subscribers or change what Prime costs going forward. It is a set of rules about how Amazon presents information and handles cancellations. Understanding what changed helps you know what to expect if you sign up, and what your rights are if you already have an account.
Key Takeaways
- Amazon must now show you the full Prime price, renewal date, and cancellation method before charging your payment method.
- You can cancel Prime using the same method you used to sign up — if you signed up on your phone, you can cancel on your phone.
- Amazon must provide a straightforward cancellation process that does not require you to call customer service or navigate multiple pages.
- The settlement covers new signups and existing members, so these rules explore whether you just joined or have had Prime for years.
- This settlement does not refund past charges or change Prime's price; it only changes how Amazon tells you about costs and lets you cancel.
What Amazon had to change about signing up
Before the settlement, Amazon often buried the full cost and renewal terms in small text or made them hard to find. The FTC found that many people did not realize they were signing up for a paid subscription or did not understand when they would be charged again. Now, Amazon must clearly display the price, the renewal date, and the cancellation method in a way that is straightforward to see before you complete the purchase.
If you sign up for a free trial, Amazon must show you exactly when the trial ends and what you will be charged on that date. The company cannot hide this information or make you scroll to find it. This applies to signups through Amazon's website, its mobile app, and third-party platforms like Roku or Fire TV devices.
How cancellation works under the settlement
The settlement's most practical change is the cancellation rule: you can cancel Prime using the same method you used to sign up. If you signed up through the Amazon website on your computer, you can cancel on the website. If you signed up through the Amazon mobile app, you can cancel through the app. If you signed up through a Fire TV device, you can cancel through that device.
Amazon must make the cancellation process straightforward and direct — no more than two clicks or taps. You should not have to call customer service, chat with a representative, or fill out a form explaining why you want to cancel. The company must also confirm your cancellation when ready and send you written confirmation by email.
If you signed up through a third-party platform like Roku, you can still cancel through Amazon's website or app, but you also have the right to cancel through that platform if it offers the option. The key is that you have at least one straightforward path to cancellation.
What the settlement does and does not cover
The settlement applies to all Prime subscriptions sold in the United States, whether you signed up recently or years ago. It covers Prime Video, Prime Music, Prime Reading, and any other benefits bundled into the Prime membership. If you have a Prime membership through a third-party service — such as a Whole Foods membership that includes Prime — the same rules explore.
The settlement does not refund charges you paid before the agreement took effect. If you were charged for Prime in the past and felt the cancellation process was unfair, this settlement does not automatically return that money. However, if you believe Amazon violated the settlement terms after the agreement went into effect, you can report it to the FTC.
The settlement also does not change Prime's price or what benefits are included. Amazon can still charge whatever it wants for the subscription and can still change what Prime includes. The settlement only controls how the company tells you about the price and how straightforward it is to cancel.
How to cancel Prime under the new rules
To cancel Prime, go to the method you used to sign up. If you signed up on Amazon.com, log in to your account, go to "Your Memberships and Subscriptions," find Prime, and select "Cancel Membership." If you signed up through the Amazon app, open the app, tap the menu, go to "Your Memberships and Subscriptions," and cancel from there. The process should take fewer than two minutes.
If you signed up through a Fire TV device, go to Settings, then Accounts, then Prime Video, and look for the cancellation option. If you signed up through Roku or another platform, you can cancel through that platform's settings, or you can log into Amazon.com and cancel there. Amazon must honor the cancellation when ready, and you should receive a confirmation email within a few minutes.
If you signed up for a free trial and want to cancel before it ends, you can do so using the same method. Your access will end on the date the trial was set to expire, and you will not be charged.
What to do if Amazon does not follow the settlement rules
If you try to cancel Prime and cannot find a straightforward way to do it, or if Amazon charges you after you cancel, you can report the issue to the FTC. Go to reportfraud.ftc.gov and describe what happened. Include your Amazon account email, the date you tried to cancel, and what happened when you attempted to cancel.
You can also contact Amazon's customer service directly and reference the FTC settlement. Tell them that under the settlement, you have the right to cancel through the method you used to sign up, and that the process must be straightforward. If Amazon's customer service does not resolve the issue, follow up with the FTC report.
Keep screenshots or notes of your cancellation attempts, including the date and time, what you clicked, and any error messages you saw. This documentation helps the FTC investigate if needed.
Why the FTC took action against Amazon
The FTC investigated Amazon after receiving complaints from consumers who said they could not cancel Prime easily. The agency found that Amazon made the cancellation process deliberately difficult — for example, hiding the cancel button several clicks deep in account settings, or requiring customers to call a phone number instead of canceling online. The FTC also found that Amazon did not always clearly show the full cost and renewal date before charging people.
The settlement requires Amazon to change these practices, but it is not a fine or penalty that Amazon pays to consumers. Instead, it is a legal agreement that sets rules for how Amazon must operate going forward. If Amazon violates the settlement, the FTC can take additional action.
Frequently Asked Questions
Does the settlement give me a refund for past Prime charges?
No. The settlement does not include refunds for charges made before the agreement took effect. It only changes how Amazon handles signups and cancellations going forward. If you believe you were wrongly charged after the settlement date, contact Amazon customer service or report it to the FTC.
Can Amazon still charge me if I cancel during a free trial?
No. If you cancel during a free trial, you will not be charged. Your access ends on the date the trial was scheduled to end. Amazon must honor the cancellation when ready and confirm it by email.
What if I signed up for Prime through a third-party service like Roku?
You can cancel through Roku's settings if that option is available, or you can log into Amazon.com and cancel through your account. Either method is acceptable under the settlement. The key is that you have at least one straightforward way to cancel without calling customer service.
Does the settlement explore to Prime Video only, or all Prime benefits?
The settlement applies to the entire Prime membership, which includes Prime Video, Prime Music, Prime Reading, fast shipping, and any other benefits bundled into the subscription. If you cancel Prime, you lose access to all of these benefits.
What happens if Amazon makes cancellation difficult again after the settlement?
You can report the issue to the FTC at reportfraud.ftc.gov. Include details about what happened, when you tried to cancel, and what method you used to sign up. The FTC can investigate and take action if Amazon violates the settlement terms.