Starting October 1, millions of additional Amazon Prime customers may begin receiving automatic refunds as part of a $2.5 billion settlement related to allegations that Amazon enrolled consumers in its Prime membership without clear consent and made it hard to cancel. The agreement includes a $1 billion civil penalty for Amazon and $1.5 billion for consumer compensation. The latest phase of payments will extend eligibility to customers who used between 11 and 20 Prime benefits, such as Prime Video or Prime Music, in a single year—those who were previously excluded from earlier distributions, according to the Federal Trade Commission (FTC).
To qualify for restitution, U.S. subscribers must have enrolled in Prime through specific checkout screens that raised concerns or attempted to cancel their membership between June 23, 2019, and June 23, 2025. They must also have used no more than 20 Prime benefits in any 12-month period after enrollment. A federal court recently approved changes to the settlement, increasing the maximum payout per eligible customer from $51 to $200. Those who previously received the lower amount may now get an additional payment of up to $149, the FTC said.
Eligible customers do not need to apply or respond to notices to receive compensation. Amazon will send the funds directly via PayPal, Venmo, or mailed paper checks. Recipients must cash or redeem checks and electronic payments within 60 days of receiving them. As of September, Amazon had already issued more than $845 million in refunds to affected customers, according to the FTC. The full payment schedule under the modified agreement is expected to be completed by April 2027.
Federal regulators are warning consumers to be cautious of scams related to the payouts. Neither the FTC nor Amazon will ask for money, personal information, or payment to release funds. Officials emphasized that any third party offering expedited distribution or guaranteed access in exchange for a fee is likely trying to defraud consumers.
Amazon to Expand Refunds to Prime Members Under $2.5 Billion Settlement
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