NEED TO KNOW
- Amazon settled FTC allegations of deceptive Prime enrollment and cancellation practices with a $2.5 billion agreement in September 2025
- Consumers who used 11-20 Prime benefits in a year are now eligible for automatic refunds starting Oct. 1
- Payments will be issued via Venmo, PayPal, or check, with additional refunds possible by April 2027
Amazon Prime users may be entitled to $200 in compensation after Amazon expanded its 2025 $2.5 billion settlement.
The September 2025 settlement “resolved FTC (Federal Trade Commission) allegations that the online retailer enrolled millions of consumers in Prime subscriptions without their consent and knowingly made it difficult for consumers to cancel,” according to an FTC press release.
Under the settlement, Amazon was required to pay up to $1.5 billion to consumers “harmed by the company’s deceptive Prime enrollment practices,” in addition to a $1 billion civil penalty.
Amazon has issued more than $845 million in redress payments to consumers, according to the FTC.
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This week, a federal court approved a joint motion filed by the FTC and Amazon to expand future payments to consumers.
The press release states that with the approval, the maximum payment cap has been raised from $51 to $200 total, and all future payments will be distributed automatically, “eliminating the need for consumers to submit claims or additional paperwork to Amazon.”
While the original order required Amazon to refund up to $51 to consumers who used fewer than 10 Prime benefits during a one-year period, the revised order requires Amazon to begin issuing automatic payments to consumers who used between 11 and 20 Prime benefits during a one-year period.
These individuals will be eligible for automatic refunds starting Oct. 1, paid electronically through Venmo or PayPal, or by mailed check.
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If consumer-accepted payments do not reach the required threshold by February 2027, Amazon will provide additional automatic payments to consumers who previously received a refund under the settlement, according to the press release.
The order states that consumers who previously accepted payments will be eligible to receive an additional $149, for a total of $200, which will be issued automatically in April 2027.
“The revised order will ensure more consumers who were harmed by Amazon’s deceptive enrollment and cancellation practices benefit from the FTC’s historic settlement,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a press statement.
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“This action underscores the FTC’s commitment to ensuring companies return money to consumers harmed by unlawful and deceptive business practices,” his statement continued.
Consumers with questions about the settlement can reach out to Amazon at (email protected).
