Amazon is issuing refunds to eligible customers under a revised $2.5 billion settlement with the Federal Trade Commission to resolve allegations that the retailer deceptively enrolled consumers in its Prime subscription service. The FTC announced that more consumers qualify for refunds from Amazon and raised the maximum payment from $51 to $200. As of September, Amazon had refunded more than $845 million to customers, with the company agreeing under the settlement to issue $1.5 billion in total refunds and pay a $1 billion civil penalty. The FTC’s original order in September 2025 required only that Amazon refund customers who used fewer than 10 Prime benefits, such as free shipping, over the course of one year. The revised order requires Amazon to reimburse members who used up to 20 Prime benefits over a year and who signed up for Prime between June 23, 2019, and June 23, 2025. Amazon began issuing automatic payments to additional customers, and millions of consumers who used up to 20 Prime benefits are now newly eligible for payouts of up to $200, according to the FTC. If payments do not meet a required threshold by February 2027, Amazon will automatically disburse an additional $149 to consumers who previously received refunds under the settlement. All eligible customers will receive refunds by April 2027. Amazon is making the payments electronically, either through Venmo or PayPal, or by mailing checks to consumers. Consumers are not required to submit refund claims, respond to any notices, or complete any paperwork. Amazon is responsible for administering the refunds, and the FTC noted that the agency is not contacting customers about the matter. Anyone posing as the FTC trying to reach consumers about the Amazon settlement is likely a scammer.
Source: cbsnews.com
