Amazon Prime $1.5 billion settlement: Members to start receiving payments ahead of holiday

December 9, 2025

Up to 35 million Amazon Prime members may receive payments from a $2.5 billion settlement with the Federal Trade Commission.

This settlement resolves allegations that the company misled millions of consumers into unwanted subscriptions and created unreasonable obstacles to prevent cancellation, reported MLive, SILive.com’s sister site.

Under the agreement, $1.5 billion will go toward consumer payments, while $1 billion represents a civil penalty that the FTC describes as historic. The company must also stop the enrollment and cancellation practices the FTC found unlawful.

“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription,” said FTC Chairman Andrew N. Ferguson in a press release. “Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again.”

Qualifying customers could receive up to $51 in subscription fee refunds. To be eligible, customers must be United States-based Amazon Prime members who enrolled through what the settlement calls a “challenged enrollment flow” between June 23, 2019, and June 23, 2025, the report said.

Eligible members must also have used three or fewer Prime benefits, including services like Prime Music or Prime Video, within any 12-month period after signing up.

Amazon began processing automatic refunds on Nov. 12, 2025, and will continue through Dec. 24, 2025. Eligible customers will get an email offering refund options through PayPal or Venmo, which must be claimed within 15 days, the report said.

Customers who don’t claim the digital payment or prefer a check will receive one by mail at their Prime account’s default shipping address. Checks should be cashed within 60 days.

Eligible customers who don’t receive an automatic refund by the end of 2025 will have another opportunity through a claims process launching in 2026.

The FTC is also alerting consumers to watch for scams related to the settlement. The agency says it is not reaching out to people about the Amazon case.

The statement warned that neither the FTC nor Amazon will demand money, make threats or request personal information.

Customers can find more information at ftc.gov/Amazon or www.SubscriptionMembershipSettlement.com.