Amazon has started distributing refunds to eligible Prime members following a $2.5 billion settlement with the Federal Trade Commission. This settlement resolves a lawsuit filed in 2023, where the FTC accused Amazon of deceiving customers into signing up for Prime and obstructing their cancellation process.
The agreement includes $1 billion in civil penalties for Amazon and $1.5 billion in refunds to affected customers. Amazon has not admitted or denied the FTC's allegations, stating the settlement allows them to focus on innovation.
The refunds, which began this month and will continue until December, are for Amazon Prime subscription fees, with a cap of $51 per eligible customer. To qualify for an automatic refund, customers must have been a U.S.
Prime subscriber who enrolled through specific challenged flows between June 23, 2019, and June 23, 2025, and used no more than three Prime benefits in any 12-month period after enrollment. Eligible customers will receive an email notification from Amazon between November 12 and December 24.
They can opt to receive their refund via PayPal or Venmo, which must be accepted within 15 days. Those who do not claim the digital payment will automatically receive a check mailed to their default shipping address, which must be cashed within 60 days.
Customers who are eligible to submit a claim but not for automatic payments will be notified between December 24 and January 23, 2026.
