Amazon is issuing expanded refunds to eligible Prime members under a revised settlement with the Federal Trade Commission (FTC), following allegations of deceptive enrollment practices in its subscription service. The FTC confirmed that millions of additional customers now qualify for payments of up to $200, with refunds to be distributed automatically by April 2027.
Key developments in the FTC settlement
The FTC revised its original settlement terms in September, increasing the maximum refund from $51 to $200 and expanding eligibility to include Prime members who used up to 20 benefits over a year. Previously, only customers who used fewer than 10 benefits were eligible. The revised order applies to members who signed up for Prime between June 23, 2019, and June 23, 2025.
Amazon has already refunded over $845 million to customers under the settlement, with an additional $1.5 billion in refunds and a $1 billion civil penalty required by the FTC. Refunds are being issued automatically through Venmo, PayPal, or mailed checks, and no action is required from eligible customers. The FTC has warned that any communications claiming to represent the agency regarding these refunds are likely scams.
Timeline and distribution details
Refunds began processing on Thursday, with all eligible payments to be completed by April 2027. If refunds do not meet a required threshold by February 2027, Amazon will automatically disburse an additional $149 to previously refunded customers. The FTC emphasized that it is not contacting consumers about the refunds, and Amazon is solely responsible for administering payments.
Eligibility and next steps
Customers who signed up for Prime during the specified period and used up to 20 benefits in a year are automatically eligible. The FTC has not required claims, notices, or paperwork from consumers. For those who believe they qualify but have not received a refund, Amazon’s customer service channels are the official point of contact. The FTC reiterated that any unsolicited communications about the settlement should be reported as potential fraud.