Amazon customers eligible for refunds from a $2.5 billion Federal Trade Commission settlement should have received payments this month, as regulators unwind a major case involving Prime subscription practices.
The settlement, finalized last fall, resolved allegations that Amazon used deceptive design tactics to push shoppers to enroll in its Prime membership and then made it difficult for customers to cancel. As part of the agreement, Amazon began issuing automatic refunds on Nov. 12, with payments continuing through Dec. 24, according to the FTC. As of Monday, customers who did not receive automatic compensation can now submit formal claims for payment.
The lawsuit against Amazon was originally filed by the FTC in 2023. Regulators accused the company of using “manipulative, coercive, or deceptive user-interface designs” to enroll consumers into Prime without clear consent. The complaint also alleged that Amazon’s cancellation process was intentionally complicated and discouraged users from canceling paid subscriptions after enrollment.
Amazon has repeatedly denied those allegations and did not admit wrongdoing as part of the settlement.
“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world,” the company said in a statement released when the agreement was announced. “We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.”
Under the settlement, customers eligible for automatic refunds of up to $51 include those who signed up for Prime through what the FTC labeled a “Single Page Checkout” or similar enrollment pathways. The eligibility period runs from June 23, 2019, to June 23, 2025. To qualify for an automatic payment, users must have used three or fewer Prime benefits in any 12-month period during the eligibility window. Prime benefits include free two-day shipping, Prime Video streaming, and Amazon Music access.
Affected customers were supposed to be reimbursed within 90 days of the settlement order, according to the Associated Press. Refunds were issued either by mailed checks or through digital payment platforms such as PayPal and Venmo. The FTC said Amazon notified eligible users via email, postal mail, and website and mobile app notices.
For customers who did not receive an automatic refund, the settlement now allows them to seek compensation by submitting a claim. According to the FTC, eligible customers will receive an email or mailed notice. These notices must be postmarked by Jan. 23. The notices explain how to file a claim and outline the deadline. Consumers will then have 180 days to complete the process. The specific cutoff date will be listed in the notice.
Claims-based payments are available to customers who signed up for Prime through a “Challenged Enrollment Flow.” These flows include checkout or shipping-selection pages. To be eligible, customers must have used more than three but no more than ten Prime benefits during any 12-month period within the eligibility window. Additionally, those who unintentionally enrolled through these flows or who tried to cancel Prime online but were unable to finish the process may also qualify, according to the FTC.
“Businesses should not trick consumers into paying for subscriptions they don’t want or make it unreasonably difficult for them to cancel,” FTC Chair Lina Khan said when the settlement was announced. She added that the agreement was intended to deliver “meaningful relief” while sending a broader warning to companies that rely on manipulative design tactics.
The FTC said customers determined to be eligible for claims-based compensation will be contacted no later than Jan. 23. Once claims are submitted, Amazon has 30 days to review them. Payments will be issued shortly after approval.
Address changes may affect delivery for some customers. According to the FTC, the claims administrator will use the default address, phone number, and email Amazon has on file when sending checks or notifications. Customers who have moved or changed their contact information may need to monitor their email closely or update their details on the settlement website.
Consumers who encounter problems redeeming their checks or electronic payments can contact the settlement administrator at admin@SubscriptionMembershipSettlement.com. The official settlement website also provides a dedicated portal for customers seeking to reissue a check.
