Amazon Prime Members Face Automatic Refund Expansion

Amazon Prime customers are set to receive automatic refunds starting next week as part of an expanded federal settlement over billing and cancellation practices. The expansion aims to include millions more Prime members who used between 11 and 20 benefits during a single year, excluding them from earlier distributions.

The landmark $2.5 billion agreement resolves government allegations that Amazon enrolled consumers in Prime without explicit consent and created complex digital processes hindering cancellation efforts. As part of the resolution, Amazon agreed to pay a $1 billion civil penalty and set aside $1.5 billion for direct consumer restitution.

Federal regulators have recently approved modifications to the settlement terms, increasing the maximum total payout per eligible customer from $51 to $200. Consumers who previously received the lower capped amount may receive supplemental payments of up to $149 to reach the revised cap, according to the FTC.