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Amazon Prime customers to get refunds under FTC settlement: Key dates, eligibility, payout amounts and more
Amazon is set to pay Prime customers as part of a $2.5 billion FTC settlement, with $1.5 billion for consumer refunds.
Amazon customers may receive payments from the company as part of its $2.5 billion settlement with the Federal Trade Commission (FTC). The settlement allocates $1.5 billion directly to consumers and a $1 billion civil penalty.
The case stems from allegations that Amazon used “manipulative, coercive, or deceptive user-interface designs” to enroll users in Prime subscriptions and made it difficult to cancel them. Christopher Bissex, FTC Deputy Director of Public Affairs, told CT Insider that “tens of millions” of people were affected by Amazon’s practices.
Who is eligible for the refund?
The FTC complaint, filed in 2023, examined Prime enrollment and cancellation practices over multiple years.
According to the FTC complaint, the settlement concerns Prime subscribers potentially affected by the alleged enrollment and cancellation practices.
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How much can you receive?
Individual payout amounts will vary depending on a customer’s subscription history and the number of eligible claims, according to CT Insider.
The $1.5 billion allocated for customer refunds will be distributed based on claims submitted through the official settlement process.
Key dates and claim process
The distribution of payments is expected to begin this month, CT Insider reported. The FTC is expected to outline the claims process, including whether customers must submit forms through an official settlement portal.
To verify eligibility, claimants may be asked to provide basic information about their Amazon account and subscription history.
The FTC has advised consumers to monitor official communications related to the settlement.
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More on the lawsuit
The FTC filed the complaint against Amazon in 2023, citing subscription practices that tricked consumers into joining Prime and made it difficult to cancel memberships.
This settlement forms part of broader efforts by federal regulators to hold tech companies accountable for subscription practices that limit transparency and consumer choice, according to the FTC release.
