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2w ago

Amazon Begins Sending Prime Refunds Up to $51 as FTC Settlement Payouts Run Through Dec. 24

The first wave targets clearly eligible U.S. Prime accounts that used few benefits, with a separate claims process opening in late December for additional customers.

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In this photo illustration a package with the Amazon icon is pictured in Ankara, Turkiye on July 4, 2024.
Millions of Amazon Prime members are expected to receive up to $51 as the company settles a federal lawsuit over misleading subscriptions.
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Overview

  • Automatic payments began Nov. 12 and continue through Dec. 24 via PayPal or Venmo; recipients have 15 days to accept before a check is mailed and checks should be cashed within 60 days.
  • Eligibility for automatic payment requires U.S. Prime enrollment between June 23, 2019 and June 23, 2025 through specified “challenged” sign-up flows or an unsuccessful cancellation attempt, plus use of three or fewer Prime benefits in any 12-month period.
  • Individual refunds return actual Prime membership fees paid, capped at $51 per account, rather than credits or gift cards.
  • A second phase will be administered by a third-party starting Dec. 24, with notices expected by late January 2026 and claim deadlines running to July 23, 2026; this wave can include customers who used up to 10 benefits in a 12‑month period.
  • The $2.5 billion deal sets aside $1.5 billion for refunds and imposes a $1 billion civil penalty; Amazon denies wrongdoing but must add a clear decline button, disclose key terms at sign-up, and provide easy cancellation.