By Sam StevensonShareNewsweek is a Trust Project memberMillions of Amazon Prime customers in the United States are set to receive automatic refunds following a $2.5 billion settlement between Amazon and the Federal Trade Commission (FTC).
Why It Matters
The agreement addresses long-standing consumer protection concerns, as the FTC alleged Amazon enrolled customers in Prime subscriptions without their clear consent and made the cancellation process difficult. It represents a significant precedent in regulating online subscription practices for major U.S. tech companies and provides financial redress to affected Prime members nationwide.
Newsweek has contacted Amazon via email for comment.
...What To Know
On November 12, Amazon began issuing automatic refunds to eligible U.S. Prime customers in response to a settlement reached with the FTC in September, according to an FTC statement.
Amazon did not admit wrongdoing in the settlement.
The FTC initially filed a lawsuit in 2023, alleging that Amazon employed deceptive methods to enroll tens of millions of customers in paid Prime subscriptions without adequate consent or straightforward cancellation options.
Amazon is required under the FTC settlement to make payments totaling $1.5 billion to customers and to pay a $1 billion civil penalty.
The refund totals the actual Prime membership fees paid by an eligible customer, up to a maximum of $51, minus any prior refunds or credits.
Amazon is notifying eligible customers by email and issuing payments via PayPal or Venmo; customers have 15 days to accept.
If a customer would rather receive a paper check, they can simply ignore the payment email, and Amazon will mail a check to the default shipping address on file.
Checks should be cashed within 60 days.
...Who Is Eligible?
To qualify for an automatic refund, you must meet all three of these criteria:
- Enrolled in a Prime subscription through a so-called “challenged enrollment flow”—including universal Prime decision pages, shipping section pages, Prime Video enrollment flow, or single page checkout—between June 23, 2019, and June 23, 2025.
- Used no more than three Prime benefits, such as Prime Video or Prime Music, within any 12 months following enrollment.
- Be based in the United States.
What People Are Saying
FTC Chair Andrew Ferguson said in September: “The Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”
In its statement following the settlement, Amazon said: “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers. We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world. We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.”
The FTC said: “The FTC is not contacting people about refunds in the Amazon matter. If you get a call from someone who claims to be from the FTC, it’s a scam. Report it at ReportFraud.ftc.gov. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. And no one from Amazon will ever ask you for money to get a refund. Only scammers say they can get you special access or a guaranteed refund.”
What Happens Next
The automatic refund process will continue until December 24, 2025. Customers who do not get an automatic refund or notification may still qualify and will have an opportunity to submit claims in 2026 via subscriptionmembershipsettlement.com.
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