Amazon Raises Individual Refund Cap to $200 in Expanded FTC Settlement

Amazon is issuing automatic refund payments to U.S. customers under an expanded $2.5 billion settlement with the Federal Trade Commission (FTC). The revised agreement follows allegations of deceptive enrollment and cancellation practices for its Prime subscription service.

The maximum individual payment cap has increased from $51 to $200, with over $845 million already reimbursed as of September under the original terms. The updated eligibility criteria cover U.S. customers who used up to 20 Prime benefits over a 12-month period after signing up or attempting to cancel between June 23, 2019, and June 23, 2025.

The FTC's enforcement action aims to compensate consumers harmed by Amazon's practices, with Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, stating, 'The revised order will ensure more consumers who were harmed by Amazon’s deceptive enrollment and cancellation practices benefit from the FTC’s historic settlement.'