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Amazon has started issuing refunds to eligible Prime members following a $2.5 billion settlement with the Federal Trade Commission (FTC). The settlement resolves allegations that Amazon misled customers into enrolling in its Prime service and made it difficult for them to cancel their memberships.
Under the terms of the settlement, Amazon agreed to pay $1.5 billion in refunds to customers and $1 billion in civil penalties. The company did not admit to or deny the FTC's allegations but stated, "Amazon and our executives have always followed the law," emphasizing their commitment to making the Prime subscription process clear and straightforward.
Refunds began earlier this month and will continue through December. Eligible Prime members will receive a refund of their subscription fees, up to a maximum of $51. Customers will be notified via email between November 12 and December 24 and can choose to receive their refund through PayPal or Venmo. If a customer prefers a check, they should ignore the email, and Amazon will mail a check to their default shipping address.
The FTC confirmed that customers must accept their refund within 15 days, and checks should be cashed within 60 days. If consumers are eligible for a claim but not for automatic payments, they will be notified between December 24 and January 23, 2026.
The settlement highlights the FTC's commitment to protecting consumers from deceptive business practices. More details about the settlement can be found on the FTC's official website.