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Amazon Prime settlement could put money back in your pocket

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Amazon Prime settlement could put money back in your pocket

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Amazon has agreed to pay $2.5 billion to settle allegations brought by the Federal Trade Commission over how it enrolled customers in Prime and how difficult it made cancellation. 

The FTC alleged Amazon enrolled millions of consumers without clear consent and failed to provide a simple way to cancel.

“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription,” Federal Trade Commission Chairman Andrew N. Ferguson said.

Rather than proceed to trial, Amazon chose to settle the case. The company did not admit liability and says it has already made changes to Prime enrollment and cancellation flows. Still, the agreement stands as the second-largest monetary judgment ever secured by the Federal Trade Commission.

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Eligible U.S. Amazon Prime members can now file claims for refunds tied to the FTC’s $2.5 billion settlement. (iStock)

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How the $2.5 billion settlement breaks down

The court-ordered settlement is divided into two parts. First, Amazon must pay a $1 billion civil penalty to the federal government. As a result, this marks the largest civil penalty ever tied to a violation of an FTC rule. Second, $1.5 billion is set aside for consumer refunds. Eligible Prime subscribers may receive compensation for Prime membership fees paid during the covered period, capped at $51 per person. Because this is an FTC action, only U.S.-based Prime subscribers qualify. Therefore, customers outside the United States are not eligible.

Who qualifies for an Amazon Prime refund

You may qualify for compensation if either of the following applies.

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  • First, you signed up for Amazon Prime in the United States between June 23, 2019, and June 23, 2025.
  • Alternatively, you attempted to cancel Prime through the online cancellation process during that same period but were unable to complete it. This includes entering the cancellation flow and not finishing or accepting a Save Offer.

To confirm when you joined Prime, log in to your Amazon account. Then go to Memberships and Subscriptions and select Payment history under Prime.

How Amazon is issuing refunds

Under the settlement, refunds are distributed in two groups based on eligibility.

Automatic Payment Group

Some consumers qualified for automatic payments.

  • You were eligible if you signed up for Prime between June 23, 2019, and June 23, 2025, enrolled through a challenged enrollment flow and used no more than three Prime benefits in any 12-month period.
  • Automatic payments were issued within 90 days of the court order, with most eligible customers receiving funds by late December 2025. These payments covered Prime membership fees paid up to $51. No claim was required.

However, if you believe you qualified for an automatic payment but did not receive one, you may still be eligible to file a claim.

Claims Process Payment Group

At this point, the claims process is the primary path for refunds. The claims window opened January 5, 2026. Eligible consumers are being notified by email or postcard through early February. You may qualify to file a claim if you unintentionally enrolled in Prime through a challenged enrollment method or tried but failed to cancel your membership online between June 23, 2019, and June 23, 2025, and used fewer than 10 Prime benefits during any 12-month period. In addition, you must not have already received an automatic payment. To file a claim, you will need to confirm one of two conditions by checking a box on the claim form. Claims are reviewed for eligibility. Approved claims receive compensation for Prime fees paid, capped at $51 per person.

The FTC says Amazon used confusing Prime signup and cancellation flows that led millions of users into unwanted subscriptions. (iStock)

Where to file a Prime settlement claim

If you are eligible to file a claim, official instructions will be provided by email or mail. You can also access the court-approved settlement site directly at: subscriptionmembershipsettlement.com.

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Links to the settlement site are also available on Amazon’s website, the Prime membership page and within the Amazon app.

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Even if you do not qualify for a refund, this settlement is a strong reminder to review your subscriptions and confirm you are paying only for services you actively use. Here’s how to cancel a subscription using your iPhone and Android.

“Payments are being handled by the settlement administrator. Customers can find information and submit claims at the administrator’s website subscriptionmembershipsettlement.com,” an Amazon spokesperson told CyberGuy.

How to add or manage your Amazon Prime account

If you already have an Amazon account, adding or managing Prime takes only a few minutes. First, log in to Amazon and open the Accounts and Lists menu. From there, select Prime to view your membership details. Next, follow the prompts to add Prime or manage an existing subscription. Amazon displays pricing, billing dates and available benefits before you confirm. For that reason, review each screen carefully so you know exactly what you are agreeing to. For more on “How to get a cheap Amazon Prime membership,” click here.

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Kurt’s key takeaways

Overall, this settlement sends a clear message about subscription transparency. While a $51 refund may feel modest, the broader impact matters. Regulators are forcing companies to simplify signups and make cancellations easier. If you ever felt trapped in a subscription you did not intend to start, this case shows enforcement is finally catching up to deceptive design tactics.

The claim form shows where to find your Claim ID and PIN, which are required to file for an Amazon Prime settlement refund. (iStock)

Have you ever tried to cancel a subscription and felt blocked or misled along the way? Let us know by writing to us at Cyberguy.com.

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Google’s annual revenue tops $400 billion for the first time

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Google’s annual revenue tops 0 billion for the first time

Google’s parent company, Alphabet, has earned more than $400 billion in annual revenue for the first time. The company announced the milestone as part of its Q4 2025 earnings report released on Wednesday, which highlights the 15 percent year-over-year increase as its cloud business and YouTube continue to grow.

As noted in the earnings report, Google’s Cloud business reached a $70 billion run rate in 2025, while YouTube’s annual revenue soared beyond $60 billion across ads and subscriptions. Alphabet CEO Sundar Pichai told investors that YouTube remains the “number one streamer,” citing data from Nielsen. The company also now has more than 325 million paid subscribers, led by Google One and YouTube Premium.

Additionally, Pichai noted that Google Search saw more usage over the past few months “than ever before,” adding that daily AI Mode queries have doubled since launch. Google will soon take advantage of the popularity of its Gemini app and AI Mode, as it plans to build an agentic checkout feature into both tools.

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Waymo under federal investigation after child struck

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Waymo under federal investigation after child struck

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Federal safety regulators are once again taking a hard look at self-driving cars after a serious incident involving Waymo, the autonomous vehicle company owned by Alphabet.

This time, the investigation centers on a Waymo vehicle that struck a child near an elementary school in Santa Monica, California, during morning drop-off hours. The crash happened Jan. 23 and raised immediate questions about how autonomous vehicles behave around children, school zones and unpredictable pedestrian movement.

On Jan. 29, the National Highway Traffic Safety Administration confirmed it had opened a new preliminary investigation into Waymo’s automated driving system.

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Waymo operates Level 4 self-driving vehicles in select U.S. cities, where the car controls all driving tasks without a human behind the wheel. (AP Photo/Terry Chea, File)

What happened near the Santa Monica school?

According to documents posted by NHTSA, the crash occurred within two blocks of an elementary school during normal drop-off hours. The area was busy. There were multiple children present, a crossing guard on duty and several vehicles double-parked along the street.

Investigators say the child ran into the roadway from behind a double-parked SUV while heading toward the school. The Waymo vehicle struck the child, who suffered minor injuries. No safety operator was inside the vehicle at the time.

NHTSA’s Office of Defects Investigation is now examining whether the autonomous system exercised appropriate caution given its proximity to a school zone and the presence of young pedestrians.

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Federal investigators are now examining whether Waymo’s automated system exercised enough caution near a school zone during morning drop-off hours. (Waymo)

Why federal investigators stepped in

The NHTSA says the investigation will focus on how Waymo’s automated driving system is designed to behave in and around school zones, especially during peak pickup and drop-off times.

That includes whether the vehicle followed posted speed limits, how it responded to visual cues like crossing guards and parked vehicles and whether its post-crash response met federal safety expectations. The agency is also reviewing how Waymo handled the incident after it occurred.

Waymo said it voluntarily contacted regulators the same day as the crash and plans to cooperate fully with the investigation. In a statement, the company said it remains committed to improving road safety for riders and everyone sharing the road.

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Waymo responds to the federal investigation

We reached out to Waymo for comment, and the company provided the following statement:

“At Waymo, we are committed to improving road safety, both for our riders and all those with whom we share the road. Part of that commitment is being transparent when incidents occur, which is why we are sharing details regarding an event in Santa Monica, California, on Friday, January 23, where one of our vehicles made contact with a young pedestrian. Following the event, we voluntarily contacted the National Highway Traffic Safety Administration (NHTSA) that same day. NHTSA has indicated to us that they intend to open an investigation into this incident, and we will cooperate fully with them throughout the process. 

“The event occurred when the pedestrian suddenly entered the roadway from behind a tall SUV, moving directly into our vehicle’s path. Our technology immediately detected the individual as soon as they began to emerge from behind the stopped vehicle. The Waymo Driver braked hard, reducing speed from approximately 17 mph to under 6 mph before contact was made. 

“To put this in perspective, our peer-reviewed model shows that a fully attentive human driver in this same situation would have made contact with the pedestrian at approximately 14 mph. This significant reduction in impact speed and severity is a demonstration of the material safety benefit of the Waymo Driver.

“Following contact, the pedestrian stood up immediately, walked to the sidewalk and we called 911. The vehicle remained stopped, moved to the side of the road and stayed there until law enforcement cleared the vehicle to leave the scene. 

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This event demonstrates the critical value of our safety systems. We remain committed to improving road safety where we operate as we continue on our mission to be the world’s most trusted driver.”

Understanding Waymo’s autonomy level

Waymo vehicles fall under Level 4 autonomy on NHTSA’s six-level scale.

At Level 4, the vehicle handles all driving tasks within specific service areas. A human driver is not required to intervene, and no safety operator needs to be present inside the car. However, these systems do not operate everywhere and are currently limited to ride-hailing services in select cities.

The NHTSA has been clear that Level 4 vehicles are not available for consumer purchase, even though passengers may ride inside them.

This is not Waymo’s first federal probe

This latest investigation follows a previous NHTSA evaluation that opened in May 2024. That earlier probe examined reports of Waymo vehicles colliding with stationary objects like gates, chains and parked cars. Regulators also reviewed incidents in which the vehicles appeared to disobey traffic control devices.

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That investigation was closed in July 2025 after regulators reviewed the data and Waymo’s responses. Safety advocates say the new incident highlights unresolved concerns.

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No safety operator was inside the vehicle at the time of the crash, raising fresh questions about how autonomous cars handle unpredictable situations involving children. (Waymo)

What this means for you

If you live in a city where self-driving cars operate, this investigation matters more than it might seem. School zones are already high-risk areas, even for attentive human drivers. Autonomous vehicles must be able to detect unpredictable behavior, anticipate sudden movement and respond instantly when children are present.

This case will likely influence how regulators set expectations for autonomous driving systems near schools, playgrounds and other areas with vulnerable pedestrians. It could also shape future rules around local oversight, data reporting and operational limits for self-driving fleets.

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For parents, commuters and riders, the outcome may affect where and when autonomous vehicles are allowed to operate.

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Kurt’s key takeaways

Self-driving technology promises safer roads, fewer crashes and less human error. But moments like this remind us that the hardest driving scenarios often involve human unpredictability, especially when children are involved. Federal investigators now face a crucial question: Did the system act as cautiously as it should have in one of the most sensitive driving environments possible? How they answer that question could help define the next phase of autonomous vehicle regulation in the United States.

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Do you feel comfortable sharing the road with self-driving cars near schools, or is that a line technology should not cross yet? Let us know by writing to us at Cyberguy.com

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Adobe actually won’t discontinue Animate

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Adobe actually won’t discontinue Animate

Adobe is no longer planning to discontinue Adobe Animate on March 1st. In an FAQ, the company now says that Animate will now be in maintenance mode and that it has “no plans to discontinue or remove access” to the app. Animate will still receive “ongoing security and bug fixes” and will still be available for “both new and existing users,” but it won’t get new features.

An announcement email that went out to Adobe Animate customers about the discontinuation did “not meet our standards and caused a lot of confusion and angst within the community,” according to a Reddit post from Adobe community team member Mike Chambers.

Animate will be available in maintenance mode “indefinitely” to “individual, small business, and enterprise customers,” according to Adobe. Before the change, Adobe said that non-enterprise customers could access Animate and download content until March 1st, 2027, while enterprise customers had until March 1st, 2029.

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