Amazon Issues Refunds to Prime Members Following $2.5 Billion Settlement
Overview of the Settlement
Amazon has begun distributing payments to eligible Prime members as part of a significant $2.5 billion settlement addressing federal allegations of misleading marketing practstarts. The settlement, reached in September 2023, arose from a lawsuit filed by the Federal Trade Commission (FTC). The FTC accused Amazon of making it difficult for customers to both enroll in and cancel their Prime memberships. As part of the agreement, Amazon has committed to refunding $1.5 billion to affected customers, while the company has not admitted to any wrongdoing regarding the allegations.
Payment Timeline
Starting November 12, Amazon has initiated automatic payments to eligible Prime members, with distributions expected to continue until December 24, 2025. According to Christopher Bissex, deputy director of public affairs at the FTC, those who qualify will receive automatic payments, eliminating the need for individual claims. For Prime members who do not receive an automatic refund, claims can be submitted beginning December 24, 2025. A notification regarding how to file these claims will be sent no later than January 26, 2026.
Eligibility Criteria
To be eligible for a refund, customers must have enrolled in Amazon Prime between June 23, 2019, and June 23, 2025. Automatic refunds are designated for those who either signed up for Prime or attempted to cancel their memberships through what the FTC refers to as the “challenged enrollment flow.” This includes any version of specific pages related to Prime enrollment. Furthermore, individuals must have utilized no more than three distinct Amazon Prime benefits within a 12-month timeframe to qualify.
How to Receive Your Refund
Eligible Prime members will receive refunds via PayPal or Venmo, which they must accept within 15 days. Should eligible customers prefer a check instead, they should disregard the PayPal or Venmo payment. Amazon will then process a check to the default shipping address linked to their Prime account. Recipients of checks are advised to cash them within 60 days.
Maximum Refund Amount
Refund amounts for eligible Prime members may reach up to $51, as indicated by the FTC.
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