Amazon to Pay Prime Members $1.5 Billion in FTC Settlement

Amazon has reached a substantial settlement with the Federal Trade Commission (FTC) concerning $2.5 billion over alleged deceptive practices related to its Prime membership. Of this amount, $1 billion will be directed to the government, while the remaining $1.5 billion is earmarked for roughly 35 million affected customers.

$1.5 Billion Refund for Prime Members

This settlement comes in response to concerns that certain Prime enrollment processes made it too easy for users to inadvertently sign up. Customers who registered for Prime between June 23, 2019, and June 23, 2025, through specific pathways may be eligible for refunds.

Eligibility for Automatic Refunds

• To qualify for an automatic refund, customers must have enrolled via:
• The Universal Prime Decision Page
• The Shipping Option Select Page
• The Prime Video enrollment flow
• The Single Page Checkout
• Users must have utilized Prime benefits no more than three times in the first 12 months post-sign-up.
• Refunds, which can be capped at $51, will be automatically processed within 90 days of finalizing the settlement.

Claims Process for Non-Automatic Refunds

• If customers do not qualify for the automatic refund but enrolled during the eligible period, they can still seek refunds through a claims form.
• Amazon will send this form to users who signed up through the challenged enrollment flows and utilized up to ten Prime benefits within a year.
• Once distributed, customers will have 180 days to complete and submit their claims.
• Refunds will be issued within 30 days of claim approval.

Potential for Additional Refunds

If Amazon distributes less than $1 billion in the initial refund phases, it will extend eligibility to more users. The next group would include those who signed up via the challenged enrollment flows and used up to four Prime benefits without filing a claim.

This process will continue to expand eligibility until the company meets its obligations under the settlement agreement. Customers are encouraged to watch their emails for updates regarding potential refunds, even if they do not initially qualify under the first two refund phases.

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