Amazon Begins Payouts In $2.5B Prime Subscription Settlement: How Much You Can Get

By Chris Spiker From Daily Voice

Amazon Prime customers are starting to receive payments after the online retail giant was accused of tricking millions of users into unwanted subscriptions.

The payments are going out after the Federal Trade Commission reached a record $2.5 billion settlement with Amazon in late September. Amazon is required to pay a $1 billion civil penalty and return $1.5 billion to roughly 35 million customers who were misled into enrolling in Prime or stuck paying for it.

The fine is one of the largest in FTC history, with the agency fining Facebook $5 billion in 2019 for violating users' privacy. Amazon's civil penalty is the largest ever tied to an FTC rule violation, while the restitution is the second-highest payout in the agency's history.

The FTC said Amazon enrolled users in Prime without their knowledge. Internal documents cited by regulators revealed that Amazon employees described the subscription tactics as "a bit of a shady world" and warned that unwanted sign-ups were "an unspoken cancer."

Amazon must also overhaul its enrollment and cancellation process, offering clear opt-out options and a simple cancellation flow.

"The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription," FTC chair Andrew Ferguson said in September. "Today, we are putting billions of dollars back into Americans' pockets, and making sure Amazon never does this again."

The FTC said automatic refunds will go to Prime users who live in the US and enrolled through one of Amazon's "challenged enrollment flows" between Sunday, June 23, 2019, and Monday, June 23, 2025. Customers must have also used no more than three benefits in any 12-month period after signing up for Prime.

Eligible users can receive up to $51 in refunded subscription fees between Wednesday, November 12, and Wednesday, December 24. Customers will get an email offering a refund through PayPal or Venmo and will have 15 days to accept it.

Anyone who ignores the email will receive a check mailed to their Prime account's default shipping address, and checks must be cashed within 60 days. Customers who don't receive an automatic refund but believe they qualify can wait until Amazon opens a claims process in 2026.

A smartphone displaying an Amazon Prime signup page.

Unsplash - Marques Thomas

The FTC is also warning people about potential scams related to the refunds. The agency said it isn't contacting anyone about refunds in the Amazon case.

"The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize," the agency said. "No one from Amazon will ever ask you for money to get a refund. Only scammers say they can get you special access or a guaranteed refund."

The agency urged customers not to pay anyone who promises a refund or asks for personal information. Scam attempts should be reported to the FTC's website.

You can learn more on the settlement's website.