If you live in Arizona and you tried unsuccessfully to cancel an Amazon Prime membership, you could be entitled to a payout.
Arizona's attorney general filed a suit against the online giant in 2024 alleging "unfair and deceptive business practices" related to its cancellation process for Prime.
Must Read
-
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
-
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP
-
A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
Now, Amazon and the AG have reached a settlement, with Amazon agreeing to pay $3 million, which the AG will distribute to "eligible consumers," according to a report from the Arizona Daily Star.
Amazon "denies that it ever engaged in activity that violates any Arizona law," in the settlement, the Daily Star report says.
'Intentionally confusing and misleading''
In a release announcing the suit in 2024, the AG alleged that Amazon's cancellation process, "is intentionally confusing and misleading, a strategy Amazon tellingly called Project Iliad."
"Amazon's cancellation process allegedly required users to navigate a complicated and manipulative interface with skewed wording, confusing choices, and repeated nudging. Such methods, known as 'dark patterns,' exploit cognitive biases to influence and manipulate consumer choices," the release said .
According to the release, Amazon's Project Iliad tactics were allegedly successful in reducing Prime subscriptions to the tune of 14%.
On top of the $3 million, the settlement will also see Amazon pay $1.5 million for the state's legal fees, $1.5 million into a consumer education and fraud investigation fund for AG's office and $1 million in donations to charities selected by the AG, according to the Daily Star.
The lawsuit alleged that until 2023, consumers had to navigate through at least six steps to cancel a Prime membership, the Daily Star said.
Richie Taylor, spokesperson for the Arizona Attorney General's Office, told the Daily Star that it was not clear whether the $3 million payout would cover all affected Arizonans. "Our goal is to get as much back to consumers as possible," he said.
The AG's suit claimed that "Amazon values its Prime members not only for the subscription fees it collects from them [...] but also because Prime members spend more than twice as much as other Amazon customers, averaging about $1,400 per year."
FTC settlement
In 2025, Amazon settled a lawsuit that the Federal Trade Commission filed in 2023 alleging "that Amazon enrolled millions of consumers in Prime subscriptions without their consent, and knowingly made it difficult for consumers to cancel."
Amazon agreed to pay $2.5 billion in the settlement, with $1.5 billion of that to be distributed to consumers.
It also agreed to change its practices, including "a clear and conspicuous button for customers to decline Prime," the FTC said, stipulating that "Amazon can no longer have a button that says, 'No, I don't want Free Shipping.'"
The settlement also said that Amazon must create "an easy way for consumers to cancel Prime, using the same method that consumers used to sign up. The process cannot be difficult, costly, or time-consuming and must be available using the same method that consumers used to sign up."
Like the Arizona settlement, Amazon did not admit or deny any wrongdoing.
The FTC had, in 2024, proposed an updated "click to cancel" rule that would "require sellers to make it as easy for consumers to cancel their enrollment as it was to sign up."
The amended rule was blocked after a federal appeals court said in 2025 that the FTC had not conducted a preliminary regulatory analysis, according to a report from the Associated Press.
However, this year, the FTC appeared to be reviving its efforts to amend the existing rule, as it launched an advance notice of proposed rulemaking, which means it is considering new regulatory action.
What To Read Next
-
These are 5 things to buy before you retire in America — especially while Trump is still in the White House
-
American millionaires under 45 keep two-thirds of their wealth out of stocks. Here's where their money is actually going
-
The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes
-
Here's the average income of Americans by age in 2026. Are you keeping up or falling behind?
Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now .
This article originally appeared on Moneywise.com under the title: Amazon agrees to pay $3M to Arizona Prime members after AG alleged 6-step cancellation 'dark pattern'
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
