Find Out If Amazon Prime Customers Qualify for FTC Settlement Payout

Millions of Amazon Prime customers are beginning to receive refunds related to a significant $2.5 billion settlement with the Federal Trade Commission (FTC). This settlement arose from allegations that Amazon employed misleading tactics to enroll individuals in Prime and complicate the cancellation process.

Key Details of the Settlement

• Total Settlement Amount: $2.5 billion
• Civil Penalty: $1 billion allocated to the government
• Customer Refunds: $1.5 billion designated for refunds to customers
• Maximum Individual Payout: Up to $51 per eligible person
• Reported Refunds: Some customers report receiving refunds of $31

Who Qualifies for Refunds?

Refund eligibility includes U.S.-based Amazon Prime customers who signed up between June 23, 2019, and June 23, 2025. However, eligibility is limited to specific sign-up processes identified by the FTC.

Additionally, customers must have utilized Prime benefits, such as free shipping or streaming, three times or fewer within any 12-month period following their enrollment date.

How to Receive Your Refund

• Eligible customers generally do not need to take action.
• Amazon began notifying customers via email in November regarding their payment options.
• Payment can be received through PayPal or Venmo.
• If no electronic claim is made, a check will be mailed to the registered shipping address.

What If You Miss the Email?

If you do not receive any notification by December 24, 2023, you will have another opportunity to claim a refund in 2026. The FTC plans to launch a formal claims process at that time, though specific details are still pending.

Background of the Settlement

This settlement follows accusations that Amazon utilized “subscription traps” to promote Prime memberships, which currently cost up to $139 annually. A federal judge approved the settlement in September. Although Amazon disputes these allegations, the company is moving forward with the settlement, affirming its commitment to transparent sign-up and cancellation processes.

Consumer Caution

The FTC has advised consumers to remain vigilant for potential scams related to this settlement. Neither Amazon nor the FTC will request money, personal information, or make threats regarding the compensation process.

For further details, visit ftc.gov/Amazon or SubscriptionMembershipSettlement.com.