Amazon to refund millions in $2.5B Prime settlement
Amazon will refund millions after settling an FTC lawsuit over Prime subscriptions and cancelation issues.
Two major global companies have agreed to settlements to some customers after facing lawsuits.
Amazon recently agreed to a $2.5 billion settlement after a lawsuit from the Federal Trade commission. Similarly, AT&T agreed to a $177 million settlement after two instances where their customers information was hacked and stolen.
Here’s what to know, including how to determine if you’re eligible for part of the payment:
What was Amazon’s $2.5 billion settlement for?
The settlement comes after the FTC accused Amazon of coercing its customers into Prime subscriptions and making these subscriptions extremely hard to cancel. Amazon denied these claims, stating it followed legal business practices. However, the retail giant agreed to pay the settlement to prevent further lawsuits.
What was AT&T’s $177 million settlement for?
In 2019, AT&T was hacked and sensitive information such as names, birthdays, and social security numbers was released. The attack was announced March 30, 2024, and was followed by a second attack on July 12, 2024, and six months of logged texts and calls from AT&T users was breached.
AT&T claims they are not at fault for either of these attacks, yet has agreed on the $177 million settlement to prevent further potential legal charges.
How to apply for the Amazon Prime Settlement
Two different settlement groups will be issued money depending on the circumstances of their case. The amount of money each claimant may receive is based on the fees they were charged during their subscription period. However, payments are capped at $51 per claimant.
The first group to receive an automatic payment without having to even file a claim is those who used their Amazon Prime benefits three or fewer times during any 12 months of enrollment. Customers who qualify for this settlement should receive their payment by Dec. 24, 2025.
Those who do not qualify for the automatic payments, still have the opportunity to fill a claim. A third-party claim administrator will send out information to file a claim by Jan. 23, 2026. However eligible claimants will have to wait until July 23, 2026 to submit the claim.
How to apply for the AT&T Settlement
Eligible claimants must submit a claim online through the AT&T Data Incident Settlement Claim Form, claims may also be mailed. All claims must be received by Nov. 18, 2025 whether via online or mail.
In order to be eligible for the AT&T settlement customers must have documentation that they were affected by either information breaches. Those who are able to show they were affected by the 2019 breach could possibly claim up to $5,000 according to the settlement website. Others affected by the 2024 text message and call breach are eligible for compensation up to $2,500.
Alternatively there is a third cash payment option, which will be a share of the settlement after administration costs and claims are received.
Miguel Legoas is a Deep South Connect Team Reporter for Gannett/USA Today. Find him on Instagram @miguelegoas and email at mlegoas@gannett.com.
