Amazon has initiated payouts to eligible Prime members as part of a $2.5 billion agreement with the Federal Trade Commission (FTC). This settlement, reached in September, followed a lawsuit that accused the company of misleading customers during the enrollment process and complicating the cancellation of Prime memberships.
As part of the settlement, Amazon agreed to pay $1 billion in civil penalties alongside $1.5 billion allocated for customer refunds. Importantly, Amazon did not admit any wrongdoing in relation to the FTC’s accusations. The company stated, “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.” They emphasized their efforts to simplify the sign-up and cancellation processes for Prime memberships.
The refunds commenced earlier this month and are projected to continue through December, according to FTC confirmations. Eligible Prime members can expect to receive refunds of their subscription fees, capped at $51.
To qualify for an automatic refund, customers must meet specific criteria set by the FTC. They must be Amazon Prime customers in the United States, signed up through a designated enrollment process between June 23, 2019, and June 23, 2025, and utilized no more than three Prime benefits within a 12-month timeframe post-enrollment.
Eligible customers will receive an email from Amazon outlining the refund process between November 12 and December 24. They have the option to receive their refunds via PayPal or Venmo, with a requirement to accept the payment within 15 days. For those preferring cash by check, they should disregard the email; if the electronic payment is not claimed, a check will be mailed to the customer’s default shipping address, which should be cashed within 60 days.
Additionally, consumers who might not be automatically eligible for refunds will be informed between December 24 and January 23, 2026.
This settlement and the ensuing refunds reflect Amazon’s commitment to addressing consumer concerns while maintaining a focus on customer innovation. The proactive steps taken in response to the FTC’s allegations demonstrate the company’s willingness to rectify past issues and enhance the customer experience moving forward.