Amazon Begins Prime Refunds Under FTC Settlement

Eligible Amazon Prime customers could receive refunds of up to $200 under a $2.5 billion settlement with the Federal Trade Commission (FTC) over the company's enrollment and cancellation practices. According to ABC7, Amazon began issuing automatic payments in early October 2026, with qualifying customers expected to receive their refunds by April 2027.

The FTC accused Amazon of enrolling millions of consumers in Prime without their knowledge or consent and making it difficult for subscribers to cancel their memberships. The settlement, reached in September 2026, provides refunds to customers who meet specific eligibility requirements.

According to the settlement criteria outlined by ABC7, customers must have signed up for Amazon Prime between June 23, 2019, and June 23, 2025, and attempted unsuccessfully to cancel their memberships online during that period.

Eligible customers must also have used no more than 20 Prime benefits during a 12-month period. Examples of these benefits include Prime Video and Amazon Music Prime.

Customers who qualify do not need to submit a claim or complete additional paperwork to receive their payments. ABC7 reported that Amazon will distribute refunds through Venmo, PayPal, or mailed checks.

Recipients must redeem their payments within 60 days of the issue date. Customers should therefore pay attention to the date associated with their refund to avoid missing the redemption deadline.

Some customers who previously received compensation may also qualify for an additional payment. According to ABC7, customers who already received $51 under an earlier settlement could receive the remaining $149, bringing their total compensation to $200.

The FTC settlement addresses allegations concerning Amazon's Prime enrollment and cancellation processes. The company began distributing automatic refunds in early October, while eligible customers are expected to receive their payments by April 2027.