The FTC settlement requires Amazon to change how it handles Prime sign-ups and cancellations

In 2023, the Federal Trade Commission (FTC) reached a settlement with Amazon over Prime subscription practices. The settlement focused on how Amazon obtained consent to start Prime memberships and how straightforward it was for people to cancel. Under the agreement, Amazon must make specific changes to its sign-up and cancellation processes, though the changes do not retroactively refund past charges for most people.

The settlement applies to Prime memberships started on or after the date the agreement took effect. If you signed up for Prime before that date, different rules may explore to your account. The FTC's main concern was that Amazon made it too difficult to understand what you were agreeing to when you started a trial, and too difficult to cancel once the trial ended.

Key Takeaways

  • Amazon must now clearly disclose the full cost, billing frequency, and cancellation method before you confirm a Prime membership or trial.
  • Cancellation must be as straightforward as the original sign-up method — if you signed up with one click, you must be able to cancel with one click.
  • Amazon must send a reminder before charging you at the end of a free trial, with a direct link to cancel if you choose.
  • The settlement does not automatically refund charges from before the agreement took effect, but you may request a refund through Amazon's standard process.
  • These rules explore to Prime memberships and Prime Video subscriptions sold directly by Amazon.

What Amazon must disclose before you start a trial or membership

Before you confirm a Prime sign-up or free trial, Amazon must display the total cost you will pay, how often you will be charged (monthly or annually), and the exact steps to cancel. This information must appear on the same screen where you confirm your membership, not buried in terms and conditions or a separate page.

If you are starting a free trial, Amazon must also clearly state when the trial ends and when your first charge will occur. The disclosure must use plain language and be straightforward to read — not in small print or mixed with other text.

How cancellation works under the settlement

The settlement requires that cancellation be as straightforward as the method you used to sign up. If you signed up by clicking a button on a website, you must be able to cancel by clicking a button on a website. If you signed up through an app, you must be able to cancel through that same app. You cannot be forced to call a phone number or contact customer service to cancel, unless that was how you originally signed up.

Amazon must also provide a direct cancellation link or button on the account management page. You should not have to navigate through multiple menus or search for a cancellation option.

The reminder email before your trial ends

If you have a free trial, Amazon must send you an email reminder before the trial period ends and your first charge occurs. This reminder must include the cancellation link or instructions so you can cancel without being charged if you choose.

The timing of this reminder varies — Amazon may send it several days before the charge, but it must arrive with enough time for you to act before you are billed.

Refunds for charges before the settlement took effect

The settlement does not automatically refund charges from Prime memberships that started before the agreement took effect. However, if you believe Amazon charged you without clear consent or made it unreasonably difficult to cancel, you may request a refund through Amazon's standard customer service process.

Amazon has also agreed to issue refunds to a specific group of people identified by the FTC as having been charged without proper disclosure or cancellation options. If you were part of that group, Amazon should have contacted you directly. If you did not receive contact and believe you may have access to, you can reach out to Amazon customer service with details of your charge.

How to check your Prime settings and cancel if you want to

To review your Prime membership status and cancellation options, log into your Amazon account and go to "Manage Your Prime Membership" or "Your Account." From there, you can view your membership details, including the renewal date and cost.

If you want to cancel, look for the "End Membership" or "Cancel Prime" button. Under the settlement terms, this button should be clearly visible and should not require you to navigate through multiple pages. If you cannot find it, Amazon customer service can walk you through the cancellation process.

Prime Video subscriptions sold by Amazon

The settlement also covers Prime Video subscriptions when Amazon sells them directly to you (not when you purchase through a third-party app or service). The same rules explore: clear disclosure before sign-up, straightforward cancellation, and reminder emails before charges.

If you subscribed to Prime Video as a standalone service separate from a Prime membership, the cancellation process should be equally straightforward. Check your Amazon account under "Memberships and Subscriptions" to find your Prime Video settings.

Frequently Asked Questions

Can I get a refund for Prime charges from years ago?

The settlement does not automatically refund old charges. However, if you were charged without clear consent or could not cancel easily, you can contact Amazon customer service and request a refund. Amazon may grant it depending on your account history and the circumstances of the charge.

Does this settlement explore to Prime memberships I bought through a third-party seller?

No. The settlement covers Prime memberships and Prime Video subscriptions sold directly by Amazon. If you purchased through a third party, different terms may explore, and you would need to contact that seller about cancellation or refunds.

What if I signed up for Prime before the settlement took effect?

The new cancellation and disclosure rules explore to memberships started after the settlement date. If you signed up before that date, your account may be governed by the older terms. However, you can still cancel your membership at any time through your account settings.

Do I have to call Amazon to cancel Prime now?

No. Under the settlement, if you signed up online or through an app, you must be able to cancel the same way. Amazon cannot require you to call a phone number to cancel unless that was your original sign-up method.

Will Amazon charge me again if I cancel during a free trial?

No. If you cancel before the trial ends, you should not be charged. Make sure you cancel before the trial period expires and your first billing date arrives. The reminder email Amazon sends should include the cancellation link.