Amazon has started distributing compensation to qualifying Prime members, marking the first payouts from a $2.5 billion settlement reached with the Federal Trade Commission over alleged deceptive enrollment and cancellation practices.
The settlement stems from a 2023 FTC lawsuit that alleged Amazon used manipulative design tactics to nudge users into signing up for Prime and intentionally made the cancellation process confusing. In September, the company agreed to the multibillion-dollar payout to put the case to rest.
As part of the agreement, Amazon will pay $1 billion in civil penalties and allocate another $1.5 billion to compensate affected Prime members.
Amazon did not admit wrongdoing or concede to the FTC’s claims, but agreed to the settlement to move forward without prolonged litigation.
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“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” Amazon wrote in a September statement. “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership.”
The Federal Trade Commission confirmed that the payouts from the settlement began on Nov. 12, 2025, and will continue through Dec. 24, 2025.
“Our settlement required Amazon to pay those people who clearly qualify without them having to do anything,” Christopher Bissex, deputy director of public affairs at the FTC, told CBS News. “So those people are getting the automatic payments.”
Eligible Prime members who do not receive an automatic refund will have the option to file a claim beginning Dec. 24. According to Bissex, those customers will be notified by Jan. 23, 2026, with instructions on how to submit their claims.
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Only users who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025, will be eligible for refunds.
Those who either signed up for Prime or attempted to cancel but were directed through what Amazon called a “challenged enrollment flow” will qualify for automatic payment. A September court order defines that process as “any version of the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment flow, or the Single Page Checkout.”
Eligible customers will receive their refunds via PayPal or Venmo and must accept the payment within 15 days, the FTC said. Those who would rather receive a check can simply decline or ignore the digital refund offer.
“Once you do not claim the PayPal or Venmo payment, Amazon will mail you a check to your default shipping address listed on your Prime subscription,” the FTC stated on its website. “If you get a check, please cash it within 60 days.”
As per the FTC, qualifying Prime members could be entitled to as much as $51 in refunds.