Amazon Prime begins sending out refunds after $2.5 billion settlement

Amazon North American Delivery^ Return and Refurbished products center warehouse in Toronto Toronto^ Canada^ 10 April 2025

Amazon has begun distributing refunds connected to its $2.5 billion settlement with federal regulators, with automatic payments rolling out to eligible Prime members starting November 12 and continuing through December 24. The payout follows accusations from the Federal Trade Commission that the company steered users into Prime subscriptions and obstructed attempts to cancel.

When the settlement was announced, FTC Chairman Andrew Ferguson said, “The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime and then made it exceedingly hard for consumers to end their subscription.” He later added, “We are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again.”

Amazon, while agreeing to the settlement, denied wrongdoing and noted it chose to resolve the dispute to avoid a lengthy legal fight, saying at the time that “Amazon and our executives have always followed the law.”

Under the agreement, Prime members who enrolled between June 23, 2019, and June 23, 2025, may qualify for refunds of up to $51. Automatic payments are going to users who either enrolled through or attempted to leave via the company’s “challenged enrollment flow,” including versions of the Universal Prime Decision Page, Shipping Option Select Page, Prime Video enrollment flow, or Single Page Checkout. These customers must also have used no more than three Prime benefits within a year.

Most eligible shoppers don’t have to take any action, according to the FTC. Payments will arrive via PayPal or Venmo and must be accepted within 15 days, though customers who prefer a check can simply ignore the digital refund; Amazon will then mail a check to the default address on file, which must be cashed within 60 days.

For Prime users who do not receive an automatic refund, a claims process will open December 24. The FTC says notices with instructions will be sent no later than January 26, 2026. A separate claims window will also launch next year for any additional eligible customers who did not receive refunds during the initial November–December payment period.

Editorial credit: eskystudio / Shutterstock.com


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