What Is the Amazon Lawsuit?
The Amazon lawsuit at the center of this page is a federal enforcement action the Federal Trade Commission brought against Amazon.com, Inc. over how it enrolled and retained Amazon Prime subscribers, formally captioned Federal Trade Commission v. Amazon.com, Inc., et al., Case No. 2:23-cv-0932-JHC, in the U.S. District Court for the Western District of Washington at Seattle.
Unlike a private class action or a multidistrict litigation consolidating many plaintiffs' suits, this case was filed and prosecuted directly by the FTC itself under the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), with individual consumers as the intended beneficiaries of the resulting refunds rather than named plaintiffs in the litigation.
Amazon.com, Inc. is the corporate defendant. Former Amazon executives Neil Lindsay and Jamil Ghani were named as Individual Settling Defendants, reflecting the FTC's allegation that they had authority over the Prime enrollment and cancellation flows the case challenged. The Honorable John H. Chun presided over the case.
“Plaintiff, Federal Trade Commission, filed its Complaint for Permanent Injunction, Civil Penalties, Monetary Relief, and Other Equitable Relief, subsequently amended as Amended Complaint for Permanent Injunction, Civil Penalties, Monetary Relief, and Other Equitable Relief, for a permanent injunction, monetary relief, civil penalties, and other relief in this matter, pursuant to Sections 5(m)(1)(A), 13(b), and 19 of the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act.”
Source: U.S. District Court, Western District of Washington, Federal Trade Commission v. Amazon.com, Inc., et al., Case No. 2:23-cv-0932-JHC, Stipulated Order for Permanent Injunction, Monetary Relief, Civil Penalty Judgment, and Other Relief, Document 535 (September 25, 2025)
Why Are People Filing Amazon Lawsuits?
The FTC filed the Amazon lawsuit because it alleges Amazon enrolled tens of millions of customers in Amazon Prime without clear consent and then made cancellation deliberately difficult. The stipulated order's own findings confirm the court had already granted partial summary judgment for the Commission on the central legal question before the case settled.
According to the FTC and the court's September 17, 2025 summary judgment order, Amazon obtained consumers' billing information before disclosing all material terms of a Prime subscription, a direct violation of ROSCA's disclosure requirement, and gave Individual Settling Defendants Lindsay and Ghani authority over the enrollment and cancellation design the FTC challenged.
The FTC's own enforcement announcement described Amazon's cancellation flow, which the agency internally called the "Iliad" flow in earlier filings, as designed with enough steps and friction to discourage customers from completing it, alongside enrollment interfaces the Commission alleged used a "double-stacked sign-up button" and similar design choices that obscured the recurring charge a customer was agreeing to.
What Injuries Are Included in the Amazon Lawsuit?
The Amazon lawsuit alleges one primary category of harm: financial loss from being charged for a Prime subscription customers did not knowingly agree to, or could not easily cancel once enrolled. The definition below explains the underlying legal concept in plain language.
Unauthorized or Non-Consensual Subscription Charges
A negative option feature is, in an offer to sell a good or service, a provision under which a customer's silence or failure to take an affirmative action to reject or cancel is treated as acceptance or continued acceptance of the offer.
The stipulated order defines Amazon's Prime enrollment paths, including the Universal Prime Decision Page, the Shipping Option Select Page, the Prime Video enrollment flow, and the Single Page Checkout, collectively as a "Challenged Enrollment Flow," and found that Amazon obtained a customer's billing information before clearly disclosing the price, autorenewal terms, and cancellation steps tied to that charge. The $1.5 billion Consumer Fund exists specifically to redress customers harmed this way, either through automatic payment or the claims process the order established.
Who Qualifies for the Amazon Lawsuit?
You may qualify if:
- You are a U.S. Amazon Prime customer who signed up through one of the Challenged Enrollment Flows, or unsuccessfully tried to cancel Prime online, between June 23, 2019 and June 23, 2025
- You used no more than 20 Prime Benefits, such as Prime Video or Prime Music, in any 12-month period after enrolling
You may not qualify if:
- You never held an Amazon Prime subscription during the covered period, or you knowingly and successfully enrolled and canceled with no issue
- You used more Prime Benefits than the order's threshold allows in the relevant 12-month period, which the settlement administrator's own records determine
Only the court-appointed settlement administrator, or a qualified attorney reviewing your own Amazon account records, can confirm your individual eligibility and expected payment amount under the FTC's revised order.
What Is the Current Status of the Amazon Lawsuit?
The current status of the Amazon lawsuit is a fully resolved federal enforcement action, with the court's Stipulated Final Order entered and an expanded round of consumer refunds now scheduled.
Federal Trade Commission v. Amazon.com, Inc., et al., Case No. 2:23-cv-0932-JHC
The FTC filed its original complaint on June 21, 2023, and an amended complaint on September 20, 2023, in the U.S. District Court for the Western District of Washington. Judge John H. Chun granted the Commission's partial motion for summary judgment on September 17, 2025, finding Amazon's Prime subscription was subject to ROSCA and that Amazon obtained billing information before disclosing all material terms. The parties then filed a Stipulated Final Order for Permanent Injunction, Monetary Relief, Civil Penalty Judgment, and Other Relief, entered September 25, 2025, resolving the case as to Amazon and the two Individual Settling Defendants without a trial.
| Proceeding Type | FTC federal enforcement action under the FTC Act and ROSCA, not an MDL or private class action |
| Court | U.S. District Court, Western District of Washington, at Seattle |
| Judge | The Honorable John H. Chun |
| Case Filed | June 21, 2023 (amended September 20, 2023) |
| Defendants | Amazon.com, Inc.; Individual Settling Defendants Neil Lindsay and Jamil Ghani |
| Order Entered | September 25, 2025, Stipulated Final Order, Document 535 |
How Much Is the Amazon Lawsuit Settlement Worth?
The Amazon lawsuit's Stipulated Final Order totals $2.5 billion in judgments, split between a $1.5 billion Consumer Fund for eligible Prime customers and a $1 billion civil penalty owed to the U.S. Treasury, not to consumers.
$2.5 billion, $1.5 billion, and $1 billion are the court-ordered figures stated in the Stipulated Final Order, checkable and definitive. What any individual customer actually receives depends on the FTC's revised payment schedule and that customer's own Prime enrollment and cancellation history, which only the settlement administrator's own records can confirm.
The order originally capped per-customer refunds at $51, but a later revised order the FTC announced expands that cap to $200 per eligible customer, with fully automatic payments beginning October 1, 2026 and no claim form required for this round.
If total payments under the expanded round do not reach a required threshold by February 2027, Amazon must send an additional $149 to customers who already received the original $51 payment, beginning by April 2027, bringing their total to $200.
Latest Amazon Lawsuit Updates
The latest Amazon lawsuit updates and news, including new filings, rulings, and case-count reports, are tracked below as they're confirmed. As of September 2026, the Amazon MDL reached a settlement, described in the timeline below. The full timeline below covers every verified development since the first case was filed.
Full Amazon Lawsuit Timeline
Amazon Confirms $845 Million Paid Ahead of October Payments
The FTC reported Amazon had issued more than $845 million in redress payments to consumers as of late September 2026, days before the expanded $200 round begins. The revised order newly covers customers who used between 11 and 20 Prime benefits in a 12-month period, a group the original $51 round excluded.
FTC Expands Automatic Refunds to $200 Per Customer
The FTC announced a revised order raising Amazon's per-customer refund cap from $51 to $200 and making the expanded round fully automatic, with payments to an estimated 35 million eligible customers scheduled to begin October 1, 2026 and no claims form required.
First-Round Claims Process Closes
The claims process for Prime customers who did not qualify for the original automatic $51 payment closed in July 2026, after Amazon distributed initial refunds under the September 2025 Stipulated Final Order.
Court Enters $2.5 Billion Stipulated Final Order
Judge John H. Chun entered the Stipulated Final Order for Permanent Injunction, Monetary Relief, Civil Penalty Judgment, and Other Relief on September 25, 2025, requiring Amazon to pay $1.5 billion into a Consumer Fund and a $1 billion civil penalty to the U.S. Treasury.
Court Grants Partial Summary Judgment for the FTC
Judge Chun granted the FTC's partial motion for summary judgment on September 17, 2025, finding Amazon's Prime subscription is subject to ROSCA and that Amazon obtained consumers' billing information before disclosing all material subscription terms.
FTC Files Amended Complaint
The FTC filed its Amended Complaint for Permanent Injunction, Civil Penalties, Monetary Relief, and Other Equitable Relief against Amazon.com, Inc. and named individual executives on September 20, 2023, expanding on the original June 2023 complaint.
FTC Files Original Complaint Against Amazon
The Federal Trade Commission filed its original complaint against Amazon.com, Inc. on June 21, 2023, in the Western District of Washington, opening the case that would become Case No. 2:23-cv-0932-JHC.
How to File an Amazon Lawsuit
To file an Amazon lawsuit, review and follow the 4 steps below.
- Confirm you enrolled in or tried to cancel Prime during the covered window: The order covers U.S. customers who signed up for Amazon Prime through a Challenged Enrollment Flow, or who tried and failed to cancel it, between June 23, 2019 and June 23, 2025.
- Check for a notice from the settlement administrator: Eligible customers are contacted directly by the court-appointed Claims Supervisor or settlement administrator, not by Amazon itself, and do not need to file a claim form for the automatic $200 round.
- Watch for the October 1, 2026 payment date: The FTC's revised order sets automatic payments beginning October 1, 2026, distributed by check, PayPal, or Venmo depending on the option the customer selects.
- Consult a qualified attorney if you believe you were missed: Only the settlement administrator or a qualified attorney reviewing your own Amazon account and payment records can confirm your specific eligibility or payment amount.
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What Evidence Do I Need for the Amazon Lawsuit Refund?
Amazon's own account and billing records, not documents a customer needs to gather personally, are the primary evidence in this case, since the settlement administrator relies on Amazon's enrollment and cancellation logs to identify who qualifies automatically.
Customers who believe their own records are incomplete or incorrect can keep copies of Prime enrollment confirmation emails, billing statements showing Prime charges, and any records of cancellation attempts, such as screenshots or support chat transcripts, as supporting evidence if a dispute arises over eligibility or payment amount.
What Did Amazon and Its Executives Allegedly Know?
The FTC alleged Amazon and the two named individual executives, Neil Lindsay and Jamil Ghani, had direct authority over the Prime enrollment and cancellation design the case challenged and continued using it despite that authority. The court's own summary judgment order found the Individual Settling Defendants had the authority to control the subscription enrollment and cancellation flows for Amazon Prime.
Amazon neither admitted nor denied the FTC's allegations as part of the settlement, except as specifically stated in the order itself, and agreed to a permanent injunction requiring clear disclosure of any negative option feature, a visible option to decline it, removal of Amazon's double-stacked sign-up button, and simple cancellation mechanisms going forward.
How Does the FTC Prime Case Compare to Other Amazon Lawsuits?
Amazon faces several other legally distinct matters that share the company's name but are not part of the FTC Prime enforcement action described on this page. Each is listed below for disambiguation only; none of their facts are part of Case No. 2:23-cv-0932-JHC's own claims or settlement.
| Matter | What It Involves | Relationship to This Case |
|---|---|---|
| De Coster, et al. v. Amazon.com, Inc. | A separate federal antitrust class action alleging Amazon used an anti-discounting policy against third-party sellers to inflate commission fees and consumer prices, also pending in the Western District of Washington | Separate case, separate legal theory (antitrust, not deceptive enrollment), still pending |
| Amazon $309.5 million returns settlement | A class action alleging Amazon shortchanged customers on refunds for returned items, resolved for a $309.5 million non-reversionary fund with preliminary approval granted August 18, 2026 | Separate case about refund shortfalls on returned merchandise, not Prime enrollment |
| Amazon $2.25 million FCRA settlement (DOJ) | A Department of Justice case alleging Amazon violated the Fair Credit Reporting Act by failing to give identity theft victims requested transaction records | Separate federal statute and separate underlying conduct, unrelated to Prime enrollment |
| FTC v. Amazon advertising-pricing lawsuit | A newer FTC lawsuit alleging Amazon deceived advertisers by manipulating the ad prices they were charged | Separate 2026 FTC matter, distinct conduct (advertiser pricing, not consumer Prime enrollment) |
Frequently Asked Questions
What is the Amazon lawsuit about?
The main Amazon lawsuit covered here is a Federal Trade Commission enforcement action, Case No. 2:23-cv-0932-JHC, alleging Amazon enrolled customers in Amazon Prime without clear consent and made the subscription difficult to cancel, resolved by a $2.5 billion Stipulated Final Order.
Is the Amazon lawsuit a class action?
No, not this one. It is a direct federal enforcement action brought by the FTC under the FTC Act and ROSCA, though the resulting Consumer Fund still pays refunds to eligible individual customers the way a class action settlement would.
Has the Amazon Prime lawsuit settled?
Yes. The court entered a Stipulated Final Order on September 25, 2025, and the FTC later issued a revised order raising per-customer refunds to as much as $200, with automatic payments to eligible customers starting October 1, 2026.
Do I need to file a claim to get an Amazon Prime refund?
No. The expanded $200 refund round is fully automatic for eligible customers under the FTC's revised order, and no claim form is required, though customers who already went through the earlier claims process may see a different payment timeline.
Are the Amazon antitrust and Amazon Prime lawsuits the same case?
No. De Coster v. Amazon is a separate, still-pending antitrust class action over third-party seller pricing, legally distinct from the FTC's Prime enrollment case, even though both name Amazon.com, Inc. as defendant.
Who are Neil Lindsay and Jamil Ghani?
Neil Lindsay and Jamil Ghani are former Amazon executives named as Individual Settling Defendants in the FTC's case, based on the court's finding that they had authority to control the Prime subscription enrollment and cancellation flows the FTC challenged.