Amazon Prime Payouts Surge to $200 as Settlement Payments Expand
Amazon Prime customers may be in line for a larger payout under a revised settlement. The e-commerce giant agreed to pay $2.5 billion last year to settle allegations it enrolled millions of customers in Prime subscriptions without their consent, then made it difficult to cancel. Under the original agreement, Amazon was required to distribute $1.5 billion to consumers and pay a $1 billion civil penalty, the largest fine in FTC history for a rule violation. So far, the company has distributed $845 million.
However, a joint order between the FTC and Amazon allows more customers to qualify for a refund and increases payments from $51 to $200. Customers do not need to submit claims; payments will be issued automatically to those who qualify.
The revised order applies to customers who used between 11 and 20 Prime benefits during a one-year period, including free shipping and faster delivery rates, as well as other Amazon products offered for free such as Prime Video, Prime Music, and Kindle Books. Refunds will be distributed beginning October 1 via check, Venmo, or PayPal.
Amazon will also send payments to customers who received previous refunds, eligible for an additional $149, bringing their total payout to $200. Payments will expire 60 days after the issue date and continue through April 2027.