Amazon settles with FTC, needs to pay Prime members $1.5 billion

Amazon recently agreed to a $2.5 billion settlement with the FTC over allegedly deceptive practices related to Prime memberships. While $1 billion goes to the government, the remaining $1.5 billion will be distributed to approximately 35 million affected customers, potentially putting up to $51 back in your pocket.

The settlement addresses specific Prime enrollment flows that the FTC claimed made it too easy to accidentally sign up. If you enrolled in Prime between 2019 and 2025 through certain website paths, you might be eligible for a refund.

1. Do you qualify for an automatic refund?

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To receive an automatic refund (capped at $51), you must meet specific criteria established in the settlement.

You must have signed up for Prime between June 23, 2019, and June 23, 2025, through one of the “challenged enrollment flows.” These include the Universal Prime Decision Page, Shipping Option Select Page, Prime Video enrollment flow, or Single Page Checkout.

Additionally, you must have used your Prime benefits (such as free shipping) no more than three times within 12 months of signing up. If you meet these criteria, Amazon will automatically issue your refund within 90 days of the settlement.

2. Check for a claims form

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If you don’t qualify for an automatic refund but still signed up during the eligible period, you may qualify for the second round of refunds.

Amazon will send a claims form to customers who signed up through the challenged enrollment flows and used up to 10 Prime benefits in a 12-month period. This form will be sent within 30 days after the automatic refunds are distributed.

You’ll have 180 days to complete and submit the claim form once you receive it. After reviewing your claim, Amazon will issue refunds within 30 days of approval.

3. Additional refund phases may follow

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If Amazon distributes less than $1 billion after the first two refund phases, it must expand eligibility to more customers.

The next eligible group would be those who signed up through a challenged enrollment flow, used up to four Prime benefits, but didn’t submit a claim. This would continue with customers who used five benefits and so on until Amazon meets its settlement obligations.

Keep an eye on your email in the coming months for communications about potential refunds, even if you don’t initially qualify under the first two phases.


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