Amazon customers who are eligible to receive a portion of the company's $2.5 billion settlement with the Federal Trade Commission will get paid soon.
The retail giant agreed to the settlement to resolve an antitrust lawsuit the FTC filed in 2023. Federal officials alleged Amazon coerced millions of consumers into enrolling in Prime subscriptions, then made those agreements extremely difficult to cancel.
The FTC announced the settlement, which officials called "historic," on Sept. 25. Amazon agreed to make some changes to its website, though it denies any wrongdoing,
In a statement, the company said it has "always followed the law."
"We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world," the statement added. "We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years."
Here's what to know about the timing of payments:
Who is eligible to get paid from Amazon's settlement?
To be eligible for a settlement payment, Amazon customers must have signed up for Prime between June 23, 2019, and June 23, 2025, according to the court order.
Customers are only eligible for payment if they unsuccessfully tried to cancel their Prime subscription, or if they signed up for Prime through what the documents call a "challenged enrollment flow."
The "challenged" flow means any subscription started through certain pages on Amazon's website, including the "Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment flow, or the Single Page Checkout," per the court order.
Do you need to file a claim in Amazon settlement?
There will be two phases of payments in the Amazon settlement.
Automatic payments: The first payments will be distributed through an automatic payout, meaning customers don't have to submit a claim.
Who's eligible: Only Amazon customers who used their Prime benefits three or fewer times over any 12-month period of enrollment will receive an automatic payment.
Filing claims: Under the second wave, customers will have to submit a claim to receive payment.
Who's eligible: Only Amazon customers who used their Prime benefits ten or fewer times over any 12-month period of enrollment will receive a payment in this phase.
When will Amazon send out settlement payments?
Amazon confirmed to USA TODAY that eligible customers will receive monetary compensation, not Amazon credits or gift cards. Payments will be processed by a third-party claims administrator.
Here's the timeline of payments, per Amazon:
Customers who qualify for the automatic payments will receive them by Dec. 24.
The third-party claims administrator will send out information on how to make claims by Jan. 23.
Eligible claimants have until July 23, 2026, to submit the forms.
How much money can eligible customers get from Amazon settlement?
The amount of money each customer gets from the settlement is based on the total amount of Amazon Prime membership fees paid during the duration of their subscription.
However, the amount maxes out at $51 per customer, according to the court order.
Melina Khan is a national trending reporter for USA TODAY. She can be reached at melina.khan@usatoday.com.
This article originally appeared on USA TODAY: When do payments go out for Amazon’s $2.5 billion FTC settlement? What we know.
Reporting by Melina Khan, USA TODAY / USA TODAY
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