by Seattle, WA — Amazon Prime members across the United States are now receiving refunds following the company’s $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that Amazon used deceptive tactics to enroll customers in Prime and made it difficult for them to cancel.
Amazon Begins Issuing Refunds
The payouts stem from a 2023 federal lawsuit in which the FTC accused Amazon of steering users into Prime subscriptions through misleading page designs and “dark patterns,” along with creating obstacles for members attempting to cancel.
Amazon settled the lawsuit in September 2025 by agreeing to $1 billion in civil penalties and $1.5 billion in customer refunds, though the company did not admit any wrongdoing.
In a prior statement, Amazon defended its practices:
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” — Amazon spokesperson
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The FTC confirmed that automatic refunds began rolling out in mid-November and will continue through December 24.
Who Qualifies for a Refund?
Not every Prime subscriber is eligible. According to the FTC, customers must meet three specific requirements to receive an automatic payout:
- You are a U.S. Amazon Prime customer.
- You signed up for Prime through a “challenged enrollment flow” between June 23, 2019, and June 23, 2025.
These flows include:- the universal Prime decision page
- the shipping selection page
- single-page checkout
- the Prime Video enrollment flow
- You used no more than three Prime benefits in any 12-month period after joining.
Prime benefits include Prime Video, Prime Music, and other perks offered at no additional cost.
These criteria aim to identify customers who may have been enrolled unintentionally or without clear consent.
How Much Will Customers Receive?
Eligible Prime members will receive up to $51, which represents a refund of their Prime subscription fees for the period in question. The exact amount depends on how much each customer paid during their enrollment.
How Payments Will Be Delivered
Amazon says payments will be issued by PayPal or Venmo, depending on what the customer selects. Here’s how it works:
- Customers will receive an email from Amazon between Nov. 12 and Dec. 24.
- They will have 15 days to accept their PayPal or Venmo refund.
- Customers who ignore the payment link will instead receive a check mailed to their default shipping address.
- Checks must be cashed within 60 days.
Amazon spokesperson Mark Blafkin added:
“If consumers are eligible to submit a claim but were not eligible for automatic payments, they will be notified between December 24th and January 23, 2026.”
This means additional claims may continue into early next year.
Why the FTC Took Action
The FTC accused Amazon of using interface designs that nudged customers into Prime without clear consent, including:
- placing Prime signup prompts in checkout sequences
- designing cancellation flows that required numerous steps
- automatic renewals that were not clearly disclosed
The agency said the settlement aims to establish stronger consumer protections.
Under the agreement, Amazon must:
- simplify Prime cancellation
- clearly disclose membership costs and renewal terms
- provide prominent opt-in choices
- refrain from using manipulative design tactics
The FTC called the settlement a landmark action in addressing deceptive digital enrollment practices.
What Customers Should Do Now
Prime subscribers who believe they may qualify should watch for an email from Amazon through December 24. Those who prefer a mailed check should simply allow the digital payment option to expire.
The FTC also encourages consumers to monitor their accounts and review their billing history to confirm subscription charges were accurate.
Amazon maintains a customer service page explaining the refund process, and customers can also refer to the FTC’s consumer updates for additional details.
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