Amazon’s $2.5 billion FTC settlement: Key things to know about Prime refunds and claims process
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 latest settlement resolved allegations that the company signed consumers up for Prime subscriptions without their consent and made it difficult to cancel them.
Of the total payment, $1 billion will go towards civil penalties, the largest fine ever issued for rule violations in FTC history, and $1.5 billion will be refunded to affected consumers, limited to $51 per person. The company also needs to end illegal Prime sign-up and cancellation practices.
Repayment in two stages
Automatic refunds continue
Payments began on November 12 and will continue until December 24. The FTC said eligible customers must accept their refunds within 15 days of receipt. Refunds will be automatically issued to Prime subscribers who may have signed up between June 23, 2019 and June 23, 2025 through transactions such as “One-Page Checkout.”
Claim process for remaining customers
Subscribers who are not eligible for automatic payments will be able to make a claim after December 24th. This includes those who unsuccessfully attempted to cancel their membership or signed up through a difficult flow, and those who used Prime benefits less than 10 times in any 12-month period. Once Amazon submits the form, customers will have 180 days to file a claim, and refunds will cover up to $51 in membership fees.
Eligibility for automatic refunds
Eligible customers must meet all three criteria:
Become an Amazon Prime customer in the US.
Signed up for Prime between June 23, 2019, and June 23, 2025, through a “hard signup flow” (e.g., universal Prime decision page, single-page checkout, Prime Video signup).
No Prime benefits used more than three times in any 12-month period following registration.
Refund amounts
Eligible subscribers can get a refund on their Amazon Prime fees, up to a maximum of $51 per person.
How will customers receive refunds?
Automatic refunds will be sent via PayPal or Venmo. Customers must accept the return within 15 days after receiving it.
Get a check instead
Subscribers who choose to receive checks via PayPal or Venmo should ignore the refund email. Amazon will send a check to the default shipping address associated with the Prime account. Customers are encouraged to collect their checks within 60 days.
For those who do not receive automatic refunds
Eligible customers who do not receive automatic refunds do not need to take immediate action. Amazon will begin the claims process in 2026 and refunds will be issued to claimants.
FTC guidance
The FTC emphasized that customers do not need to contact the agency to request a refund. They also warned against making payments to anyone who promises a refund or requests personal information in exchange for a fee.
Allegations against Amazon
The FTC investigation found that Amazon mistakenly made it difficult to buy products without signing up for Prime. In some cases, payment buttons did not clearly indicate subscription registration. Cancellation attempts were also complex and required multiple approvals.
The investigation began in 2021 and culminated in a lawsuit filed by former FTC Chairman Lina Khan in 2023. The settlement marks a major consumer protection action against the e-commerce giant.
