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Amazon Begins Prime Refunds Under $2.5 Billion FTC Settlement

The court-approved FTC deal also mandates clearer Prime sign-up disclosures with easier cancellation.

Overview

  • Automatic payments started Nov. 12 and continue through Dec. 24 via PayPal or Venmo, with paper checks mailed if not accepted within 15 days.
  • Most eligible customers receive up to $51, calculated from Prime fees paid and capped per person under the settlement terms.
  • Eligibility centers on U.S. accounts enrolled between June 23, 2019 and June 23, 2025 through specified “challenged” pages or after an unsuccessful cancellation attempt.
  • The automatic wave targets customers who used three or fewer Prime benefits in any 12‑month period, with a claims phase to follow for those with up to 10 uses.
  • A third‑party administrator will send claim instructions by Jan. 23, 2026 with forms due by July 23, 2026, as Amazon pays $1.5 billion in refunds and a $1 billion civil penalty while denying wrongdoing.