Amazon Prime Issues Refunds Following $2.5 Billion Settlement: Arrival Dates Announced
Amazon has begun processing refunds for Prime members as part of a significant $2.5 billion settlement. This agreement addresses allegations made by the Federal Trade Commission (FTC) regarding misleading practices related to Prime memberships.
Settlement Details
In September, Amazon settled a lawsuit with the FTC that accused the company of misleading customers during the enrollment process for Prime and complicating cancellation efforts. The settlement stipulates that Amazon will provide $1.5 billion in refunds to affected customers without admitting any wrongdoing.
Payment Schedule
Eligible Prime members will start receiving automatic payments between November 12 and December 24, 2023. According to Christopher Bissex, deputy director of public affairs at the FTC, individuals who qualify will receive their funds without needing to take any action.
- Automatic payments begin: November 12, 2023
- End of automatic payments: December 24, 2023
Customers who do not receive an automatic refund may submit a claim starting December 24, 2023. Notices regarding the filing process will be sent by January 26, 2026.
Eligibility Criteria
Customers must meet specific criteria to qualify for a refund:
- Must have signed up for Amazon Prime between June 23, 2019, and June 23, 2025.
- Automatic payments are available to those who either signed up or attempted to cancel their Prime membership via specified pages.
- Eligible customers should have used three or fewer Amazon Prime benefits in any 12-month period.
How to Claim Your Refund
Eligible members will be issued a refund via PayPal or Venmo. It is essential to accept these payments within 15 days. Those who prefer a check must ignore the digital payment methods.
If the PayPal or Venmo payment is not claimed, Amazon will mail a check to the customer’s default shipping address associated with their Prime subscription. Recipients should cash the check within 60 days.
Potential Refund Amount
Eligible Prime members may receive up to $51 each, according to FTC information. This settlement aims to address the misleading practices and ensure that customers are compensated fairly.
