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It’s payback time for these conned customers.
Amazon has begun sending automatic refunds to millions of eligible Prime customers as a result of the company’s $2.5 billion settlement with the Federal Trade Commission, the agency confirmed.
The FTC accused Amazon of deceiving customers into signing up for Prime subscriptions while intentionally making it difficult to cancel.
The settlement consists of $1 billion in civil penalties and $1.5 billion to go directly to eligible Prime subscribers, capped at $51 per person.
The first wave of payments, which began rollout Nov. 12, will be automatically dispersed through Dec. 24.
The FTC said that customers should accept their refunds within 15 days of receiving them.
As part of the agreement, Amazon must now provide customers with clear disclosures, an easy cancellation process, and ensure that consent is obtained for subscriptions.
“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 and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers,” Amazon spokesperson Mark Blafkin said in a statement at the time.
“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.”
Who qualifies for a refund?
Subscribers must have signed up for Prime between June 23, 2019, and June 23, 2025, to be eligible for a refund, which is being issued in two waves.
The first wave of refunds consists of subscribers who signed up for a Prime subscription through a “challenged enrollment flow” and haven’t used more than three Prime 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.
These customers do not need to submit claims and will receive a payment of $51 maximum, “the total amount of membership fees paid” during a subscription.
The second wave of customers will have to fill out a form after the automatic payment period ends Dec. 24 to receive payment.
Amazon will send out a form to those eligible to make a claim, and they will have up to 180 days after receiving the form to submit it. Amazon will have up to 30 days to review the claims submitted and will then pay those with valid claims the total amount of Amazon Prime membership fees, up to $51.
This group includes customers who signed up through a challenged enrollment flow or unsuccessfully attempted to cancel their memberships during the five-year period, and haven’t used more than 10 benefits during any 12 months of enrollment.
An attempt to cancel is defined as “entering, but failing to complete, the online cancellation process” or “taking a Save Offer during the online cancellation process.”
How to receive your refund
Subscribers eligible for an automatic refund will be notified by email and can collect the money through PayPal or Venmo.
Customers who wish to receive a check rather than payment via PayPal or Venmo should ignore the emails from Amazon about the refund, 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 explained, adding that customers should cash their checks within 60 days.
The FTC said that those who are eligible but did not get an automatic refund should wait for further guidance in 2026.
“In 2026, Amazon will begin its claims process for eligible Prime customers who didn’t get an automatic refund between November and December 2025.”