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Amazon Prime Refunds Roll Out After $2.5 Billion FTC Settlement — Here’s Who Gets Paid
Amazon has officially begun issuing refunds to eligible Prime members, following its massive $2.5 billion settlement with the Federal Trade Commission. The refund program is part of a legal resolution to federal allegations that Amazon misled customers into enrolling in Prime memberships and made cancellations unnecessarily difficult.
The FTC settlement, finalized in September, includes $1 billion in civil penalties and $1.5 billion set aside for customer refunds. Although Amazon did not admit wrongdoing, the company said the agreement allows it to “move forward and focus on innovating for customers.”
When Are Amazon Prime Refund Payments Going Out?
According to the FTC, automatic payments began issuing between November 12 and December 24, 2025. Eligible customers are receiving notifications directly from Amazon about their refund, with payments delivered through PayPal or Venmo.
Consumers who do not receive an automatic payment will have the opportunity to file a formal claim starting December 24, 2025, with all claim notices sent by January 26, 2026.
“Our settlement required Amazon to pay those people who clearly qualify without them having to do anything,” said Christopher Bissex, the FTC’s deputy director of public affairs.
Amazon is required to pay $1.5 billion for refunds to customers affected by its unlawful Prime enrollment and cancellation practices. If you are eligible for an automatic refund, Amazon will send you an email between Nov. 12 – Dec. 24, 2025. Learn more: https://t.co/L2WE750KwE
— FTC (@FTC) November 13, 2025
Who Is Eligible for an Amazon Prime Refund?
Only customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025 are eligible.
To qualify for an automatic refund, customers must meet all three criteria:
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Be a U.S.-based Amazon Prime customer.
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Have signed up through a “challenged enrollment flow,” including the shipping selection page, Prime Video enrollment flow, single-page checkout, or the Universal Prime Decision Page.
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Have used three or fewer Prime benefits—such as Prime Video, Prime Music, or free shipping—within any 12-month period after enrollment.
Those who used Prime extensively may still be eligible but will need to file a claim.
How Will Customers Receive Their Refund?
Refunds of up to $51 are being delivered through PayPal or Venmo, and customers have 15 days to accept the payment. Those who prefer a physical check simply need to ignore the digital payment notice.
Once the PayPal/Venmo refund goes unclaimed, Amazon will automatically send a paper check to the customer’s default shipping address, which must be cashed within 60 days.
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Why Is Amazon Issuing Refunds?
The payouts stem from a 2023 FTC lawsuit accusing Amazon of steering users into Prime via deceptive design and creating obstacles that made cancellation difficult. Although Amazon denies these claims, the settlement marks one of the largest consumer refund actions in recent years.
As refund notifications continue through the holiday season, millions of Prime members may find cash waiting in their inbox—making this one settlement you definitely don’t want to miss.
