$2.5B Amazon Settlement Payments Begin: Find Out Your Timeline

Amazon has initiated payments for eligible customers as part of its $2.5 billion settlement with the Federal Trade Commission (FTC). The settlement is a result of an antitrust lawsuit filed against the company in 2023.

$2.5B Amazon Settlement Payments Begin

On November 12, Amazon began sending automatic payments to customers who qualify for the settlement. This marks the first phase of payouts following the agreement reached in September. The FTC accused Amazon of coercing thousands of consumers into Prime subscriptions, making cancellation difficult.

Who Is Eligible for Payments?

To qualify for a settlement payment, customers must satisfy specific criteria:

• Sign-up period: Customers must have registered for Prime between June 23, 2019, and June 23, 2025.
• Cancellation attempt: Customers must have unsuccessfully attempted to cancel their Prime subscription, or used a “challenged enrollment flow” for sign-up.

The “challenged enrollment flow” includes certain pages on Amazon’s site, such as:

• Universal Prime Decision Page
• Shipping Option Select Page
• Prime Video Enrollment Flow
• Single Page Checkout

Payment Phases

The settlement payments will occur in two phases:

• Automatic Payments: Distributed to customers who used their Prime benefits three times or fewer in any 12-month enrollment period. These payments do not require filing a claim.
• Claims Process: In the second phase, customers who used their Prime benefits ten times or fewer must submit a claim to receive payment.

Timeline for Payments

Eligible customers can opt to receive automatic payments through Venmo or PayPal. If a payment is not accepted within 15 days, a check will be mailed to the address associated with their Prime subscription.

Here’s the payment timeline:

• Automatic payments will be sent between November 12 and December 24.
• A third-party claims administrator will provide claim information by January 23.
• Eligible claimants can submit their claims until July 23, 2026.

Settlement Amount

Eligible customers can receive a maximum of $51 from the settlement. The payment amount is determined by the total fees each customer has paid for their Amazon Prime membership.

This settlement marks a pivotal moment for Amazon as it addresses consumer concerns while affirming its compliance with the law.