Additional Coverage:
Amazon Prime Members Receiving Payments from $2.5 Billion Settlement
Amazon has begun distributing payments to eligible Prime members as part of a substantial $2.5 billion settlement. This comes after federal allegations that the e-commerce giant misled customers regarding their Prime memberships.
The payouts stem from a September agreement to resolve a 2023 Federal Trade Commission (FTC) lawsuit. The FTC accused Amazon of deceptively enrolling customers into Prime and subsequently making it difficult for them to cancel their subscriptions.
As part of the settlement, Amazon committed to providing $1.5 billion in customer refunds. While the company neither admitted nor denied the FTC’s allegations, it stated at the time that “Amazon and our executives have always followed the law.”
Here’s what Prime members need to know about the refund process:
Payment Schedule
Amazon initiated automatic settlement refunds for eligible Prime members between November 12 and December 24. Christopher Bissex, deputy director of public affairs at the FTC, confirmed that “Our settlement required Amazon to pay those people who clearly qualify without them having to do anything. So those people are getting the automatic payments.”
Prime members who do not receive an automatic refund have the option to submit a claim starting December 24. These customers will be notified about the claim filing process no later than January 26, 2026.
Eligibility Criteria
Only customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025, are eligible for a refund.
Automatic payments are being issued to customers who either signed up for Prime or attempted to cancel their membership unsuccessfully through Amazon’s “challenged enrollment flow.” This flow is defined as “any version of the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment flow, or the Single Page Checkout,” according to a September court order. Additionally, these customers must have utilized no more than three “Amazon Prime Benefits” within a 12-month period.
How to Receive Your Payment
Eligible customers will initially receive their refund via PayPal or Venmo. Recipients must accept these digital payments within 15 days. Those who prefer a physical check should simply ignore the PayPal or Venmo notification.
“Once you do not claim the PayPal or Venmo payment, Amazon will mail you a check to your default shipping address listed on your Prime subscription,” the FTC stated. “If you get a check, please cash it within 60 days.”
Refund Amount
According to the FTC, eligible Prime customers could receive up to $51.