Amazon Sending Refunds to Some Prime Customers

Amazon is beginning to issue refunds to millions of customers following a major federal settlement over its Prime subscription practices, according to CT Insider.

The refunds total $1.5 billion and stem from allegations by the Federal Trade Commission that Amazon used misleading design features on its website and app to push customers into Prime memberships while making cancellations unnecessarily difficult. The refunds are part of a larger $2.5 billion agreement with federal regulators, which also includes a $1 billion civil penalty.

The FTC filed its lawsuit in 2023, accusing Amazon of using “manipulative, coercive, or deceptive” design tactics that it said effectively tricked users into enrolling in Prime. An FTC official stated that “tens of millions” of consumers were impacted by these practices.

Eligible customers can receive refunds of up to $51 in Prime membership fees. Automatic refunds are being issued to users who signed up through Amazon’s “Single Page Checkout” and certain other enrollment methods between June 23, 2019, and June 23, 2025, according to the FTC.

Amazon began sending out automatic refunds on Nov. 12, continuing through Dec. 24. Customers received emails giving them 15 days to claim their refund via Venmo or PayPal.

Customers who do not respond to the email are expected to receive a paper check mailed to the default shipping address on their Amazon account, CBS News reports. Those checks must be cashed within 60 days.

Consumers who do not receive an automatic refund will still have an opportunity to recover funds. A separate claims process is expected to open later this year, though specific details have not yet been released. The FTC says it will update its website when that process begins, and an Amazon spokesperson told NBC News that eligible customers will be notified by Jan. 23.

Original Source