Amazon is currently refunding customers as part of a settlement with the Federal Trade Commission (FTC), following accusations of “deceptive enrollment and cancellation practices” on its Prime service. As per the 2025 agreement with the FTC, Amazon will pay $1 billion in civil penalties and provide $1.5 billion in refunds to affected customers. Although Amazon denies any wrongdoing, the company stated that the settlement allows it to focus on customer innovation.
Automatic Refunds to Eligible Customers
Last month, the FTC announced an increase in the maximum payout to $200, up from $51. By September, over $845 million had been refunded, with further payments distributed automatically. This eliminates the need for customers to submit claims. Payments began on Thursday for those who became eligible under the amended order. A threshold review in February 2027 will initiate final pro rata payments by April 2027.
Background of the Settlement
The settlement follows a 2023 FTC lawsuit against Amazon, accusing the company of enrolling consumers in Prime subscriptions without consent and complicating the cancellation process. The FTC described these practices as “sophisticated subscription traps.” Last month, a court approved a motion to speed up future payments to consumers.
“All future payments will be distributed automatically, eliminating the need for consumers to submit claims or additional paperwork,” the FTC stated.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized that the revised order will benefit more consumers affected by Amazon’s practices.
Eligibility for Refunds
Under the $2.5 billion settlement from last September, American Prime subscribers are eligible for refunds if they were unknowingly enrolled or faced difficulties canceling their membership between June 23, 2019, and June 23, 2025. Initially, only those who used 10 or fewer Prime benefits were eligible. The revised order extends eligibility to those using up to 20 benefits, with a maximum payout increased to $200.
If Amazon’s redress payments do not reach the $1 billion threshold, the company will begin issuing up to $149 to eligible customers. The FTC noted that “millions of additional consumers” who used between 11 and 20 benefits are now eligible for refunds.
Refunds will be given via electronic payment methods such as Venmo or PayPal, or through mailed checks, without requiring consumers to file claims or complete forms. Some Reddit users have reported receiving emails notifying them of refund eligibility, and the FTC encourages checking junk folders for such notices.
The FTC also directs consumers to visit its Amazon refund page for more information.