Amazon Expands Prime Refunds Under $2.5 Billion FTC Settlement

A federal court has approved a joint motion by the Federal Trade Commission and Amazon.com Inc. to expand and automate refunds for millions of U.S. shoppers. The move is part of a $2.5 billion settlement reached in September 2025, which includes a $1 billion civil penalty and $1.5 billion for consumer redress following allegations that Amazon used deceptive enrollment practices and obstructed Prime membership cancellations.

Under the revised order, the maximum individual payment has increased from $51 to $200. Eligibility now includes U.S. customers who signed up between June 23, 2019, and June 23, 2025, and used between 11 and 20 Prime benefits annually. Automatic payments via Venmo, PayPal, or check will begin October 1, 2026, removing the previous requirement for consumers to file claims.

As of September 2026, Amazon has issued over $845 million in payments. If total reimbursements do not reach $1 billion by February 2027, Amazon will provide supplemental top-ups of up to $149 to previous recipients, with final payments scheduled for April 2027.

Amazon denied any wrongdoing, stating it has always followed the law and that the settlement allows the company to focus on innovation. Meanwhile, the Federal Trade Commission has warned consumers that legitimate payments are automatic and that the agency will never ask for money to process a refund.