Amazon Is Sending Automatic Refunds To Millions After Record $2.5 Billion FTC Settlement: Here's What You Must Do To Claim Yours

Core Viewpoint - Amazon.com, Inc. has initiated automatic refunds to millions of customers as part of a $2.5 billion settlement with federal regulators due to misleading practices related to Prime membership sign-ups and cancellations [1][3]. Group 1: Settlement Details - The Federal Trade Commission (FTC) accused Amazon of using deceptive design practices to enroll customers in paid Prime memberships without clear consent and complicating the cancellation process [2]. - As part of the settlement, Amazon is required to overhaul its enrollment and cancellation systems, ensuring a more straightforward option for ending memberships [3]. - The settlement includes a $1 billion civil penalty and $1.5 billion allocated for customer refunds [3]. Group 2: Refund Process - Eligible U.S. Prime members who signed up through disputed enrollment flows or attempted to cancel between June 23, 2019, and June 23, 2025, could receive refunds of up to $51 [4]. - Customers must have used fewer than three Prime benefits within one year after joining to qualify for a refund, which will be the actual membership fees paid, minus any prior credits or refunds [5]. - Refunds will be processed automatically, with customers having 15 days to accept the payout through PayPal or Venmo; otherwise, a paper check will be mailed to their default shipping address [6]. Group 3: Company Response - Amazon stated that it has always complied with legal requirements and views the settlement as a way to move forward, emphasizing its commitment to improving the clarity of Prime enrollment and cancellation processes [7].