Millions of Amazon Prime customers are starting to see refunds hit their accounts as part of a record-breaking $2.5 billion settlement with the Federal Trade Commission.

The case centered on allegations that Amazon used deceptive tactics to enroll people in Prime and made it hard to cancel. Here’s what you need to know:

How much money is involved?

The settlement totals $2.5 billion. Of that, $1 billion goes to the government as a civil penalty, while $1.5 billion is earmarked for customer refunds. Individual payouts vary, but the maximum is $51 per person. Some customers report receiving smaller amounts, such as $31.

Who qualifies for a refund?

Eligibility is limited to U.S.-based customers who enrolled in Prime between June 23, 2019, and June 23, 2025, through certain sign-up flows flagged by the FTC. There’s another catch: You must have used Prime benefits — like free shipping or streaming — three times or fewer in any 12-month period after signing up.

How do you get paid?

Most eligible customers don’t need to do anything. Amazon began sending emails in November offering payment options via PayPal or Venmo, and those messages will continue through Dec. 24. If you don’t claim your payment electronically, a check will be mailed to your default shipping address.

What if you don’t get an email?

If you haven’t received a payment notice by Dec. 24, you’ll have another chance in 2026, when the FTC launches a formal claims process. Details on that process haven’t been announced yet.

Why is this happening?

The FTC accused Amazon of using “subscription traps” to push Prime memberships — currently priced at up to $139 per year — and then making cancellation difficult. A federal judge approved the settlement in September. Amazon says it disagrees with the allegations but is moving forward, adding that it strives to make sign-up and cancellation “clear and simple.”

For more information, visit ftc.gov/Amazon or SubscriptionMembershipSettlement.com.

The FTC warns consumers to watch out for scams: Neither Amazon nor the FTC will ask for money or personal information, or make threats related to this settlement.

— Generative AI was used to create this story, based on previous stories written by The Oregonian/OregonLive. It was reviewed and edited by The Oregonian.