Amazon has begun distributing payments to eligible Prime members as part of a $2.5 billion settlement linked to federal accusations that the company misled users into signing up for its subscription service.
The settlement stems from a 2023 lawsuit filed by the U.S. Federal Trade Commission, which alleged that Amazon used deceptive design tactics to push customers into Prime memberships and made the cancellation process unnecessarily complicated.
As part of the agreement reached in September, Amazon will provide $1.5 billion in refunds to affected customers. The company did not admit wrongdoing and rejected the claims, stating at the time that “Amazon and our executives have always followed the law.”
Who Is Receiving Refunds?
According to the FTC, Amazon has already started issuing automatic refunds to qualifying Prime members. Payments will be rolled out between 12 November and 24 December, depending on eligibility and the customer’s payment method.
“Our settlement required Amazon to pay those people who clearly qualify without them having to do anything,” said Christopher Bissex, deputy director of public affairs at the FTC, in a statement to CBS News. “So those people are getting the automatic payments.”
How to Claim if You Don’t Receive an Automatic Refund
Customers who do not automatically receive a payment will have the option to file a claim beginning 24 December. Notices with instructions will be sent to eligible Prime members by 26 January 2026.
Also Read This: “From Tags to Talent: Adelaide Businesses Outsmart Graffiti with Art Hub”
