Amazon expands Prime refund eligibility under $2.5 billion FTC settlement

  • Amazon expanded Prime refund eligibility under its $2.5 billion FTC settlement.
  • Eligible customers using up to 20 Prime benefits qualify for refunds up to $200.
  • Amazon must complete eligible refunds by April 2027 under revised FTC terms.

Amazon is expanding automatic refund eligibility under a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that it deceptively enrolled customers in paid Prime subscriptions and made cancellation difficult. Amazon did not admit wrongdoing. The settlement allocates $1.5 billion for customer refunds and includes a $1 billion civil penalty. Under revised terms, eligible customers who enrolled between June 23, 2019, and June 23, 2025, and used as many as 20 Prime benefits in a year may qualify, compared with the previous standard of fewer than 10 benefits. The maximum individual refund has increased from $51 to $200. Amazon began automatically sending payments to newly eligible customers through Venmo, PayPal, mailed checks or other eligible methods, with no claims filing required. The company had distributed more than $845 million by September and must complete eligible refunds by April 2027. Amazon must also meet refund targets before February 2027; the revised terms provide for an additional $149 payment to certain earlier recipients if those targets are not met.

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