Amazon Expands Prime Refunds to More Customers Under FTC Settlement

Amazon is issuing billions in refunds to customers as part of a settlement with the Federal Trade Commission (FTC) over allegations of deceptive enrollment and cancellation practices for its Prime service. The agreement, reached in 2025, requires Amazon to pay $1 billion in civil penalties and $1.5 billion in refunds. The company has maintained it followed the law, calling the settlement a way to move forward.

The FTC recently expanded eligibility for refunds, increasing the maximum payout to $200 from $51. By September, over $845 million had been refunded, with future payments being distributed automatically. The final round of payments will begin by April 2027, following a review in February 2027.

The settlement stems from a 2023 lawsuit alleging Amazon enrolled millions in Prime subscriptions without consent and made cancellations difficult. The FTC described these practices as sophisticated subscription traps. The revised order now includes customers who used up to 20 Prime benefits, up from the original 10, ensuring more consumers receive compensation.

Eligible customers will receive payments via electronic transfer or mailed check without needing to submit claims. Some users have reported receiving emails about their refunds, while others are encouraged to check their junk folders. The FTC has directed consumers to its designated refund page for more information.