After $2.5B Settlement with FTC, Amazon Starts Sending Out Prime Refunds

Amazon has started distributing refunds to qualified Prime members following its $2.5 billion settlement with the Federal Trade Commission.

The settlement, finalized in September, resolved a 2023 FTC lawsuit that accused Amazon of tricking consumers into signing up for Prime and making the cancellation process confusing and difficult.

As part of the agreement, Amazon will pay $1 billion in civil penalties and $1.5 billion directly to impacted customers. The company did not admit wrongdoing but said it wanted to move forward.

“Amazon and our executives have always complied with the law, and this settlement enables us to focus on creating new benefits for customers,” the company said in a September statement. “We work very hard to ensure signing up for or canceling Prime is clear and easy.”

Refunds began rolling out earlier this month and will continue through December, the FTC confirmed to NBC News.

How much will customers receive?

Eligible Prime members will be refunded their subscription fees, up to $51 maximum.

Who qualifies for an automatic refund?

According to the FTC, customers must:

Live in the United States and have an Amazon Prime membership.
Have signed up between June 23, 2019, and June 23, 2025, using one of the “challenged enrollment flows” — including the universal Prime decision page, shipping selection page, single-page checkout, or Prime Video enrollment flow.
Have used three or fewer Prime benefits (such as Prime Video or Prime Music) within any 12-month period after enrolling.

How and when will refunds be delivered?

Eligible members will receive an email from Amazon between Nov. 12 and Dec. 24, offering a refund via PayPal or Venmo. Customers must accept within 15 days.

Those who prefer a paper check can simply ignore the email. Once the digital payment goes unclaimed, Amazon will send a check to the customer’s default Prime shipping address. Checks must be deposited within 60 days.

Customers who qualify for refunds but do not meet the criteria for automatic payments will be notified between Dec. 24 and Jan. 23, 2026, Amazon spokesperson Mark Blafkin told NBC News