Amazon Sends Second Round of Settlement Payments to Affected Customers

Amazon is sending out another round of payments to customers affected by its $2.5 billion settlement with the Federal Trade Commission (FTC). The company was accused of using deceptive methods to register millions for paid Prime subscriptions, making it difficult for those customers to cancel.

Last year, Amazon agreed to use $1.5 billion of the total amount on customer refunds. Some consumers received automatic payments late last year, while others had to complete a claims process, with payments capped at $51 but potentially less than $1.

As part of a joint motion from the FTC and Amazon, millions more customers are now eligible for automatic payouts. This includes those who used between 11 and 20 Prime benefits during a one-year period after becoming a member, provided they signed up through Amazon's challenged enrollment flow or tried but failed to cancel their U.S. subscription.

The payment cap may adjust from $51 to $200, potentially increasing payments for some consumers. The FTC says that if consumer-accepted payments reach the required threshold by February 2027, another round of payments will be sent out starting in April 2027.