Outlook Business Desk
E-commerce giant Amazon has begun issuing refunds to qualified US Prime subscribers following a $2.5bn settlement addressing allegations that it misled users into joining Prime and complicated the cancellation process, with payments being automatically delivered to eligible accounts.
In 2023, the Federal Trade Commission (FTC) sued Amazon, claiming the company misled customers into enrolling in Prime and made cancellations difficult. Amazon settled the case without admitting or denying the FTC’s allegations, resolving the dispute under federal claims.
Refunds are available only to US customers who joined Amazon Prime between 23 June 2019 and 23 June 2025 and used three or fewer Prime benefits in any 12-month period. About 3.50 crore subscribers may qualify for reimbursement.
Qualified Prime members can get refunds of up to $51 per person for their subscription fees. This reimbursement applies to customers who were unknowingly enrolled or experienced difficulties cancelling, as outlined in the terms of the FTC settlement with Amazon.
Amazon will issue automatic refunds via PayPal or Venmo, which must be accepted within 15 days. Subscribers preferring a cheque can disregard the digital payment and will receive it at the default address linked to their Prime account.
Subscribers opting for cheque refunds must deposit them within 60 days to ensure successful processing. Amazon provides both digital and physical refund options, making it convenient for Prime members to receive reimbursements according to their preferred method.
The $2.5bn settlement imposes a $1bn civil penalty on Amazon and provides $1.5bn in refunds to consumers. It tackles misleading Prime enrolment and cancellation practices and represents the FTC’s largest civil penalty for any rule violation.
The FTC started examining Amazon Prime subscription practices in 2021 under the Trump administration, but the formal lawsuit was filed in 2023 during Chair Lina Khan’s tenure, the antitrust official appointed under President Biden.