Amazon Begins Issuing Refunds Following $2.5 Billion FTC Settlement Over Prime Enrollment Practices

Amazon has commenced issuing refunds to eligible Prime customers as part of a $2.5 billion settlement with the Federal Trade Commission (FTC). The settlement addresses allegations that Amazon enrolled consumers into its Prime subscription service without their consent and made the cancellation process challenging.

The agreement includes a $1 billion civil penalty and $1.5 billion allocated for customer refunds. Eligible U.S.-based customers who enrolled in Prime between June 23, 2019, and June 23, 2025, through specific sign-up processes identified by the FTC, and who used Prime benefits three times or fewer in any 12-month period after signing up, may receive refunds of up to $51.

Amazon began notifying eligible customers in November, offering payment options via PayPal or Venmo, with communications continuing through December 24. Customers who do not claim their payment electronically will receive a check mailed to their default shipping address.

FTC Chairman Andrew Ferguson stated, “The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”

Amazon has agreed to implement clearer disclosures about Prime's terms during the enrollment process and to simplify the cancellation procedure. The company maintains that it strives to make sign-up and cancellation processes “clear and simple.”

The FTC advises consumers to be cautious of potential scams related to this settlement, emphasizing that neither Amazon nor the FTC will request money or personal information, or make threats concerning the refunds.