Amazon begins issuing $200 refunds to Prime customers under settlement

Amazon has started issuing refunds to some Prime customers as part of a $2.5 billion settlement with the Federal Trade Commission (FTC). The payments come after the FTC announced in September that eligible customers would receive automatic refunds under a settlement agreement. The deal resolves a federal lawsuit alleging that Amazon enrolled millions of users in Prime subscriptions without their consent and made cancellations difficult.

Under the agreement, Amazon agreed to pay $1.5 billion to consumers and a $1 billion civil penalty, the largest fine in FTC history for a rule violation. So far, the company has distributed $845 million in refunds. A federal judge recently approved a revised order allowing more customers to qualify for refunds and increasing payments from $51 to $200. Payments began on October 1, 2024, and will continue through April 2027.

Eligible customers include those who signed up for Prime through deceptive or confusing enrollment pathways, known as 'challenged enrollment flows,' or tried to cancel their subscriptions but were unable to do so between June 23, 2019 and June 23, 2025. The refunds are being issued automatically via check, Venmo, or PayPal and will expire 60 days after the issue date. Customers who previously received refunds are eligible for an additional $149, bringing their total to $200.

Customers with questions about the settlement can contact Amazon at admin@SubscriptionMembershipSettlement.com.