Amazon to issue expanded Prime refunds, warns of scams
A federal judge has broadened a settlement that requires Amazon to issue additional refunds to millions of Prime members, and consumer officials caution that scammers may exploit the payments.
A federal judge has expanded a settlement that obligates Amazon to provide additional refunds to millions of Prime subscribers. Beginning Oct. 1, 2026, the company will automatically send the payments via Venmo, PayPal or mailed checks, and eligible customers will not need to take any action.
The original settlement, announced by the Federal Trade Commission last year, required Amazon to pay $2.5 billion for enrolling consumers in Prime without consent and making cancellations difficult. To date, the company has paid about $845 million.
Consumer advocates warn that the influx of unexpected refunds could attract fraudsters. The FTC advises that it will not contact individuals about refunds and that any call claiming to be from the agency is a scam.
"If you get a call from someone who claims to be from the FTC, it's a scam," the agency said.
Scammers may send emails or messages that appear to offer assistance in releasing the refund, potentially directing recipients to malicious links or requesting bank-account information. Authorities recommend that recipients treat any unsolicited request to act on the refund with suspicion.