Amazon is sending out Amazon Prime FTC settlement refunds. What to know
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$1.5 billion of Amazon's recent $2.5 billion settlement with the FTC will go directly to Prime subscribers, capped at $51 per person. Illustration: Lindsey Bailey/Axios
Amazon has started disbursing automatic refunds from its $2.5 billion settlement with the Federal Trade Commission, the agency has confirmed.
The big picture: $1.5 billion of that money — which settles allegations that the company enrolled its customers in Prime subscriptions without their consent — is going directly to Prime subscribers, capped at $51 a person.
Driving the news: The first wave of payments will be automatic, and will finish going out Dec. 24, the agency said.
- Payments started being sent on Nov. 12, and the agency said customers should accept their refunds within 15 days of receiving them.
Catch up quick: The FTC had accused Amazon of using "deceptive methods" to enroll millions of people in Prime subscriptions that were difficult to cancel.
What they're saying: "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," FTC chair Andrew Ferguson said in a statement in September.
- Amazon spokesperson Mark Blafkin told Axios in a statement at the time that "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," he said.
Here's what to know about your refund:
Timeline, eligibility for refunds
To qualify for a refund, subscribers must have signed up for Prime between June 23, 2019 and June 23, 2025. Subscribers will be refunded in two waves.
- The first group consists of subscribers who had signed up for Prime through a "challenged enrollment flow" and haven't used more than three Prime benefits, defined as benefits "the member would not have received if they were not a Prime member."
- Challenged enrollment flows include "any version of the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment flow or the Single Page Checkout."
- Amazon will pay these customers "the total amount of membership fees paid" during a subscription, $51 max.
These customers do not need to submit claims.
The next group will have to fill out a form after the automatic payout period has ended on Dec. 24.
- This group constitutes those who signed up through a challenged enrollment flow or unsuccessfully tried to cancel their memberships during the five-year period, and haven't used more than 10 Prime benefits during any 12 months of enrollment.
- The settlement defines an attempt to cancel as "entering, but failing to complete, the online cancellation process" or "taking a Save Offer during the online cancellation process."
Within 30 days of finishing automatic pay outs, Amazon will send a form to customers eligible to make claims.
- Customers can confirm whether they unintentionally enrolled, unsuccessfully attempted to cancel their subscription, or both.
- They will have up to 180 days after receiving the claims form to submit it to Amazon.
- Amazon will have up to 30 days to review these claims.
- Amazon will then pay customers with valid claims the total amount of Amazon Prime membership fees, up to $51.
How customers will receive their refunds
Customers eligible for automatic refunds will receive emails about them, the FTC said.
- Those customers can collect their refunds via PayPal or Venmo.
How to get a check instead of Venmo, Paypal payments
Customers who want a check instead of a Venmo or Paypal payment should just ignore emails from Amazon about their refunds, the FTC said.
- "Once you do not claim the PayPal or Venmo payment, Amazon will mail you a check to your default shipping address listed on your Prime subscription," the agency said, adding that customers should cash checks within 60 days.
What to do if you're eligible for an automatic refund but don't receive one
Eligible customers who don't receive an automatic refund should wait for guidance in 2026, the FTC said.
