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Amazon to Pay Prime Refunds Under $2.5 Billion FTC Deal

Automatic payments reach low-use accounts by Dec. 24, followed by a claims window opening in early 2026.

Overview

  • Amazon’s settlement splits $1 billion in civil penalties and $1.5 billion for consumer refunds stemming from FTC claims over confusing Prime enrollment and cancellation flows.
  • Eligible U.S. accounts are those enrolled in Prime between June 23, 2019 and June 23, 2025, with automatic refunds for members who used three or fewer Prime benefits in any 12‑month period.
  • Automatic payments are due by Dec. 24, 2025, a third‑party administrator will email claim instructions by Jan. 23, 2026, and claim forms are due by July 23, 2026.
  • Individual refunds are capped at about $51, are based on Prime fees paid during the eligibility window, and will be issued as monetary payments rather than credits.
  • Amazon denies wrongdoing and agreed to compliance measures tied to ROSCA, including clearer disclosures, a visible decline option, and cancellation through the same channel used to enroll.