Amazon Set to Issue Automatic Refunds to Millions More Prime Customers
Amazon is set to issue automatic refunds to millions of additional Prime customers starting next week as part of a landmark $2.5 billion agreement resolving government allegations that Amazon enrolled consumers in Prime without explicit consent and created complex digital processes that hindered efforts to cancel memberships.
The expanded federal settlement will allow consumers who used between 11 and 20 Prime benefits during a single year to receive automatic payments, a group previously excluded from earlier distributions. This brings the total number of eligible customers to millions more.
Under the resolution, Amazon agreed to pay a $1 billion civil penalty and set aside $1.5 billion for direct consumer restitution. Qualifying subscribers must have enrolled through specific disputed checkout screens or attempted unsuccessfully to cancel their membership between June 23, 2019, and June 23, 2025.
Amazon will issue funds directly through PayPal, Venmo or mailed paper checks. Recipients must cash or redeem checks or electronic payments within 60 days of issuance.