Millions of Amazon Prime Members to Get Automatic Refunds Starting Next Week
Amazon to issue automatic refunds to millions of Prime members under $2.5B settlement. Eligible customers to receive up to $200.
POLICY WIRE — City, Country — Starting October 1, an estimated millions of Amazon Prime users will begin receiving automatic payments as part of a broader federal settlement over billing and cancellation issues.
The new phase expands eligibility to those who used between 11 and 20 Prime benefits in a single year, a group that was previously excluded from earlier distributions, according to the Federal Trade Commission.
The payments are part of a $2.5 billion agreement resolving allegations that Amazon enrolled users in Prime without clear consent and made it difficult to cancel memberships. The deal includes a $1 billion civil penalty and $1.5 billion for consumer refunds. Eligible U.S. subscribers must have either signed up through disputed checkout screens or attempted to cancel between June 2019 and June 2025.
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Court-approved changes to the settlement raised the maximum payout per customer from $51 to $200. Those who received less previously may get additional payments of up to $149. No action is required from recipients, as Amazon will distribute funds via PayPal, Venmo, or paper checks, which must be cashed within 60 days.
Over $845 million has already been paid out, with the full distribution expected to conclude by April 2027. Regulators warn consumers to be cautious of scams and emphasize that neither the FTC nor Amazon will ask for personal information or payment to process refunds.
Reporting by Policy-Wire (PW)
