Amazon Prime $2.5 billion settlement: Who is eligible for refunds and when will payments arrive? Here's what to know

Published on: Nov 21, 2025 05:15 PM IST

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Millions of Amazon Prime members could get up to $51 as the company settles a federal lawsuit over misleading subscriptions.

Amazon has started rolling out refunds to the eligible Prime members after a $2.5 billion settlement with the Federal Trade Commission (FTC). The settlement came after an accusation by the FTC that Amazon is misleading customers into signing up for the Prime membership and making it hard to cancel it.

Millions of Amazon Prime members are expected to receive up to $51 as the company settles a federal lawsuit over misleading subscriptions.(REUTERS)

As part of the deal, Amazon will pay $1.5 billion in refunds to customers. The company did not admit to any wrongdoing but agreed to settle the case. Amazon said in a statement that it has “always followed the law.”

When will payments arrive?

According to CBS, automatic refunds for eligible Prime members started on November 12, 2025, and will continue until December 24, 2025. The FTC says these refunds are being sent to people who clearly qualify, without them needing to do anything.

For Prime members who do not receive an automatic refund, the option to submit a claim opens on December 24, 2025. Customers who submit a claim will receive instructions on filing it and will get a notice no later than January 26, 2026.

Who qualifies for a refund?

To be eligible, customers must have signed up for Amazon Prime between June 23, 2019, and June 23, 2025. Automatic refunds will go to customers who either signed up for Prime or tried to cancel their membership but faced difficulties through Amazon’s “challenged enrollment flow.” This includes pages like the Universal Prime Decision Page, Shipping Option Select Page, Prime Video enrollment flow, or Single Page Checkout.

The FTC also said that eligible customers must have used no more than three Prime benefits in 12 months.

How to get your refund?

Refunds are sent through PayPal or Venmo. Customers must accept the payment within 15 days. If the payment is not claimed, Amazon will mail a check to the default shipping address on the Prime account. Customers should cash the check within 60 days.

Also Read: Amazon employee broke down crying after being laid off, says company did a ‘poor job’ communicating benefits

How much will you receive?

Each eligible customer could get up to $51, according to the FTC.

This settlement marks one of the largest consumer refunds in recent years. Millions of Amazon Prime members are expected to benefit, either through automatic payments or by filing claims. Customers are advised to check their accounts and email notifications to see if they qualify and how to receive their refund.

Also Read: Hit by Amazon layoffs? Here's what you need to know about severance pay, PF, gratuity, and taxes

FAQs

Q1: Who is eligible for the Amazon Prime refund?

Customers who signed up for Amazon Prime between June 23, 2019, and June 23, 2025, and used no more than three Prime benefits in 12 months may qualify.