Amazon Sending $1.5 Billion in Automatic Refunds to Customers: 4 Things to Know

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Itโ€™s part of a settlement to resolve claims that Amazon enrolled millions of customers into Prime subscriptions without their consent.

Amazon has started sending emails and paying out up to $1.5 billion in automatic refunds to Prime customers who may be impacted by a recent settlement, according to an update from the Federal Trade Commission (FTC) on Monday.

In late September, the FTC secured a $2.5 billion settlement with Amazon to resolve the agencyโ€™s claims that the online retail giant had enrolled millions of customers into Prime subscriptions without their consent. The settlement also resolved charges that Amazon intentionally made it more difficult for people to cancel their Prime subscriptions.

1. When and How Much?

Amazon began providing automatic refunds to its Prime customers on Nov. 12 and will continue doing so until Dec. 24 of this year, the FTC said. People who are eligible to get an automatic refund should receive an email between those two dates.

โ€œYou can get your refund by PayPal or Venmo,โ€ the FTCโ€™s website also said, directing people to โ€œplease acceptโ€ the refund within 15 days of getting the email.

Eligible Prime customers will get a refund up to a maximum of $51 under the settlement for their Amazon Prime subscription fees, the FTC also said.

People who want a check are advised to ignore the Amazon email, the agency said. Once they donโ€™t claim a Venmo or PayPal payment through the email, Amazon will send a check to their default Amazon Prime shipping address.

Customers who opt for a check are advised to โ€œplease cash it within 60 days,โ€ according to the website.

2. Who Is Eligible?

People may get an automatic refund from the company if they meet three requirements: They are an Amazon Prime customer inside the United States; they signed up for a Prime subscription via one of its enrollment processes that were the subject of the FTCโ€™s allegations between June 23, 2019, and June 23, 2025; and they used no more than three Prime benefits such as Prime Video or Prime Music in a 12-month period after they signed up for the Amazon service.

The applicable enrollment processes include โ€œthe universal Prime decision page, shipping selection page, single page checkout, or the Prime Video enrollment flow,โ€ according to the FTC site.

By Jack Phillips

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