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2h ago

Amazon Begins Automatic Prime Refunds Under $2.5 Billion FTC Settlement

The refunds address FTC allegations of deceptive Prime sign-ups that were hard to cancel.

FILE - An Amazon company logo marks the facade of a building, March 18, 2022, in Schoenefeld near Berlin. Companies make it easy to subscribe to their services — and frustratingly hard to unsubscribe. In June, the Federal Trade Commission filed a complaint alleging Amazon duped people into signing up for Amazon Prime subscriptions and then designed a “labyrinthine” cancellation process. (AP Photo/Michael Sohn, File)
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Overview

  • Automatic refunds began November 12 and run through December 24 via PayPal or Venmo; recipients have 15 days to accept or a check will be mailed to cash within 60 days, with payments capped at about $51.
  • Automatic eligibility requires U.S. customers to have enrolled through specified Prime sign-up flows between June 23, 2019 and June 23, 2025 and to have used no more than three Prime benefits within any 12 months after enrollment.
  • Refunds reflect the Prime fees actually paid by each eligible customer up to a maximum of $51, minus any prior refunds or credits.
  • People who do not receive an automatic payment may file a claim when the claims portal opens December 24, 2025, with notifications expected through January 23, 2026.
  • The settlement sets aside $1.5 billion for customer refunds and imposes a $1 billion civil penalty, and Amazon did not admit wrongdoing while the FTC warns consumers to watch for scams and verify through official sites.