Amazon Begins $2.5 Billion Payouts to Prime Members After FTC Settlement
Amazon has started distributing payments to eligible Prime members as part of a massive $2.5 billion settlement with the Federal Trade Commission. The FTC alleged the company misled customers into signing up for Prime and created unnecessary hurdles for cancellation.
Key Takeaways
- Eligible US Prime members can receive refunds up to $51 per person
- Payments are being processed automatically via PayPal, Venmo, or cheque
- The settlement follows FTC claims of deceptive Prime enrollment practices
- Refunds cover members who signed up between June 2019 and June 2025
Who Qualifies for Amazon Prime Refunds?
Refunds are available exclusively to US customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025. To be eligible, members must have used no more than three Prime benefits during any 12-month period after signing up. Approximately 35 million Prime customers in the United States qualify for these refunds.
Refund Amount and Distribution Process
Eligible subscribers can receive up to $51 per person for their Prime membership fees. Amazon is processing automatic refunds through PayPal or Venmo, which recipients must accept within 15 days of receipt. Members preferring a paper cheque should ignore the digital refund notification – Amazon will then mail a cheque to their default account address. All cheques must be cashed within 60 days of issuance.
Background: The FTC Settlement Details
Amazon reached this historic $2.5 billion settlement with the Federal Trade Commission to resolve allegations that the company deceived customers into Prime subscriptions and complicated cancellation processes. The Seattle-based retailer will pay a record $1 billion civil penalty – the largest in FTC history for rule violations – plus $1.5 billion in consumer reimbursements.
The FTC initially began investigating Amazon’s Prime subscription practices in 2021 during the Trump administration. However, the formal lawsuit wasn’t filed until 2023 under FTC Chair Lina Khan, the Biden-appointed antitrust authority. Amazon settled the case while maintaining its position, stating: “Amazon and our executives have always followed the law.”
