Amazon has agreed to a $2.5 billion settlement regarding enrollment in Prime subscriptions. Of that amount, $1.5 billion is going back to consumers in the form of settlement payments of up to $51.

Here’s everything you need to know about the Amazon refunds?

Why is Amazon making payments to some customers?

Amazon agreed to the settlement in response to Federal Trade Commission charges that it enrolled millions of people in Prime subscriptions without their consent and made it hard for them to cancel. Amazon has denied the charges.

Who is eligible for part of the settlement?

There are three requirements to be eligible:

• You’re an Amazon prime customer who lives in the U.S.
• You signed up for a Prime membership between June 23, 2019 and June 23, 2026 through one of the methods mentioned by the FTC or you unsuccessfully tried to cancel your Amazon Prime membership during that time period.
• You used less than three Prime benefits, such as watching a Prime video or listening to Amazon music, in any 12-month period after you enrolled in Prime.

How much can you get?

The portion of the settlement you receive is based on the total amount of Amazon Prime membership fees you paid during the specified time period. The maximum amount is $51.

According to USA Today, eligible customers will receive monetary compensation, not Amazon credits or gift cards. The payments will be processed by a third-party claims administrator.

What should you do now?

Right now, you shouldn’t do anything. The refunds are automatic and will go out by Dec. 25.

What if I don’t get a payment?

The third-party claims administrator will send out information for those who do not qualify for automatic payments, USA Today reported. Eligible claimants will have until July 23, 2026 to submit the forms.

What did Amazon say about the settlement?

“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers. 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. We will continue to do so and look forward to what we’ll deliver for Prime members in the coming years.”

Be on alert…

The FTC said scammers often use the name of well-known companies, such as Amazon, and high-profile settlements to contact people and offer to “help” get your refund. The FTC will not contact people about the settlement and no one from the agency or Amazon will ask you for money to help secure a refund. If you receive an unexpected call, text or email from someone claiming to be from the FTC or Amazon, it’s a scam.