Amazon Prime Issues Refunds Following $2.5 Billion FTC Settlement
Amazon has initiated the process of issuing refunds to eligible Prime members as part of a settlement following a $2.5 billion agreement with the Federal Trade Commission (FTC). This settlement relates to accusations that Amazon misled customers regarding the enrollment process for Prime memberships and complicated the cancellation steps.
Background of the Settlement
In September, Amazon agreed to pay $1 billion in civil penalties alongside $1.5 billion designated for customer refunds. The FTC’s lawsuit claimed that Amazon used deceptive practices to enroll users into its Prime program.
While Amazon did not admit to any wrongdoing in the settlement, a company statement emphasized that the organization has always adhered to the law. The statement also reassured customers that Amazon is committed to making the enrollment and cancellation processes as transparent as possible.
Customer Refund Details
- Refund Amount: Eligible Prime members can expect to receive refunds of their subscription fees, with a limit set at $51.
- Eligibility Criteria:
- Must be a Prime member in the United States.
- Signed up through specific enrollment flows between June 23, 2019, and June 23, 2025.
- Utilized no more than three Prime benefits within any twelve-month period after enrollment.
Refund Process and Timeline
The refund distribution commenced earlier this month and will continue until December. Eligible customers will receive an email notification from Amazon between November 12 and December 24. Refunds can be claimed through PayPal or Venmo.
Customers have a 15-day window to accept their refunds. Those preferring checks should disregard the email pertaining to electronic refunds. If the electronic refund is not claimed, a check will be sent to the address listed on their Prime account. Checks should be cashed within 60 days of receipt.
Additionally, Amazon indicated that consumers eligible for a claim but not automatically afforded refunds will receive notifications between December 24 and January 23, 2026.
