What Amazon’s $2.5B FTC Settlement Means for Nebraskans—And What to Do Next
In September 2025, the Federal Trade Commission (FTC) announced a massive $2.5 billion settlement with Amazon. The agency alleged that Amazon’s Prime sign-up and cancellation processes were designed to mislead or trap users through deceptive “dark patterns.”
This guide explains what happened, who might get a refund, and what this landmark case means for Nebraska consumers and businesses. Whether you think you were affected or you run a business with a subscription model, you’ll find practical steps and clear answers here.
What Happened in the Amazon Settlement?
The FTC secured a $2.5 billion settlement to resolve claims that Amazon steered customers into Prime subscriptions without clear consent and then made cancellation intentionally difficult. The money is split between a $1 billion civil penalty and $1.5 billion for consumer refunds.
Early reports suggest around 35 million customers could be eligible for refunds. Some payments will happen automatically, while others will require filing a claim. Amazon has denied wrongdoing but agreed to redesign its enrollment and cancellation flows to be more transparent.
What Was the “Iliad Flow”?
The FTC’s 2023 lawsuit centered on Amazon’s internal nickname for its cancellation process: the “Iliad Flow.” Customers had to click through multiple confusing pages before canceling Prime. Regulators argued this violated both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
This case stands as one of the largest consumer protection settlements in U.S. history and sends a clear message to businesses using recurring subscription models.
How Will Refunds Work?
Refunds will be distributed in two ways:
Automatic Payments: Some Prime members who were enrolled through specific deceptive sign-up flows may receive automatic refunds.
Claims Process: Others may need to file a claim, especially those who tried to cancel between mid-2019 and mid-2025.
Reports mention refunds of up to $51 per person, but the final amount depends on account history and eligibility. Always look for official notices from the FTC or settlement administrator, and avoid third-party sites claiming to process refunds.
What Should Nebraska Consumers Do Now?
If you believe you were affected:
Save your records. Keep emails, billing history, or screenshots of your Prime enrollment and cancellation attempts.
Watch for notice. Expect an email or mailed letter with claim instructions and deadlines.
Check the FTC website. If you don’t get a notice but think you qualify, monitor the FTC’s Amazon settlement page.
Seek legal advice. If your loss is significant or you face related subscription issues, a Nebraska consumer protection lawyer can help you explore your rights.
What Should Nebraska Businesses Do Now?
This settlement is a warning for every company that offers subscriptions, memberships, or automatic renewals. Beyond federal rules, Nebraska has its own Automatic Renewal Offer Law (Neb. Rev. Stat. § 59-1601) that governs recurring charges.
Nebraska Compliance Checklist:
Clear disclosures: Prices, renewal terms, and cancellation options must be upfront and conspicuous.
Affirmative consent: Customers must actively agree to auto-renewal—no pre-checked boxes.
Easy cancellation: Nebraska law requires a cost-effective and straightforward method to cancel, such as an email address, direct link, or toll-free number.
Notice requirements: Businesses must provide clear renewal reminders to customers.
Recordkeeping: Maintain logs to show consent was obtained and notices were provided.
Failing to comply risks FTC action, state enforcement, or private lawsuits. Simplifying your process now is far cheaper than fighting a lawsuit later.
Frequently Asked Questions (FAQ)
Am I eligible for a refund from the Amazon settlement?
Eligibility will depend on how you were enrolled and whether you attempted to cancel between mid-2019 and mid-2025.
How much money could I get?
Refunds may be up to $51 per person, but the exact amount depends on your usage history.
Do I need to file a claim?
Some users will receive automatic payments, while others will need to submit a claim. Wait for official FTC or settlement administrator instructions.
What does “click-to-cancel” mean?
It’s the idea that canceling should be just as easy as signing up. Although the FTC’s specific click-to-cancel rule was partially blocked by the Eighth Circuit in July 2025, regulators are still enforcing this principle under ROSCA and other laws.
Does Nebraska have its own subscription law?
Yes. The Nebraska Automatic Renewal Offer Law (Neb. Rev. Stat. § 59-1601) governs automatic renewals and requires clear disclosures, customer consent, and easy cancellation options.
Take Control of Subscriptions
For consumers: Set reminders for trial end dates, review credit card statements, and regularly audit your active subscriptions.
For businesses: Conduct quarterly audits of your sign-up and cancellation flows. If it takes more than a minute to cancel, you may be at risk.