Amazon has begun sending automatic refunds to millions of eligible Prime customers following a historic $2.5 billion settlement with the Federal Trade Commission (FTC). The recent settlement resolved allegations that the company enrolled consumers in Prime subscriptions without their consent and made it difficult to cancel them.
Of the total settlement, $1 billion will go toward civil penalties — the largest fine in FTC history for a rule violation — while $1.5 billion will be returned to affected consumers, capped at $51 per person. The company is also required to cease unlawful Prime enrollment and cancellation practices.
Refunds in two stages
Automatic refunds underway
Payments began on November 12 and will continue through December 24. The FTC said eligible customers should accept their refunds within 15 days of receiving them. Refunds will be issued automatically to Prime subscribers who may have signed up through processes such as the “Single Page Checkout” between June 23, 2019, and June 23, 2025.
Claims process for remaining customers
Subscribers not eligible for automatic payouts will be able to file claims after Dec. 24. This includes those who unsuccessfully attempted to cancel their membership or enrolled via a challenged flow and used fewer than 10 Prime benefits in any 12-month period. Customers will have 180 days to submit claims once Amazon sends the form, and refunds will cover up to $51 in membership fees.
Eligibility for automatic refunds
Eligible customers must meet all three criteria:
Be an Amazon Prime customer in the US.
Signed up for Prime via a “challenged enrollment flow” (e.g., universal Prime decision page, single page checkout, Prime Video enrollment) between June 23, 2019, and June 23, 2025.
Used no more than three Prime benefits in any 12-month period following enrollment.
Refund amounts
Eligible subscribers can receive refunds of their Amazon Prime fees, up to a maximum of $51 per person.
How customers will receive refunds
Automatic refunds will be sent via PayPal or Venmo. Customers must accept the refund within 15 days of receipt.
Receiving a check instead
Subscribers who prefer a check over PayPal or Venmo should ignore the refund email. Amazon will mail a check to the default shipping address associated with the Prime account. Customers are advised to cash checks within 60 days.
For those who don’t receive an automatic refund
Eligible customers who do not receive automatic refunds will not need to take immediate action. Amazon will launch its claims process in 2026, and refunds will be issued to qualified claimants.
FTC guidance
The FTC emphasized that customers do not need to contact the agency to claim refunds. They also warned against paying anyone who promises a refund in exchange for a fee or requests personal information.
Allegations against Amazon
The FTC investigation found that Amazon made it difficult to buy items without inadvertently enrolling in Prime. In some cases, checkout buttons did not clearly indicate subscription enrollment. Attempts to cancel were also complicated, requiring multiple confirmations.
The investigation began in 2021 and culminated in a 2023 lawsuit under former FTC Chair Lina Khan. The settlement marks a major consumer protection action against the e-commerce giant.