Amazon Sending Checks to Customers in $2.5 Billion Prime Settlement

Newsweek
Amazon is distributing $2.5 billion to eligible Prime customers due to FTC allegations of deceptive enrollment practices.

Summary

Amazon is sending refunds to eligible Prime customers as part of a $2.5 billion settlement with the Federal Trade Commission (FTC). The FTC alleged that Amazon used deceptive tactics to enroll millions into Prime memberships and made cancellation unnecessarily difficult. $1.5 billion will be distributed as refunds to affected customers, while $1 billion will be paid as a civil penalty. Automatic payments began in November 2025, with customers offered refunds via PayPal or Venmo, and those who didn't accept electronic payments are receiving checks. Eligible customers enrolled between June 23, 2019, and June 23, 2025, and used limited Prime benefits may receive up to $51. A separate claims process will open in 2026 for those who didn't receive automatic payments. Amazon maintains it has always followed the law and is focused on improving the clarity of its Prime sign-up and cancellation processes.

(Source:Newsweek)