Amazon Begins Issuing Automatic Payments in $2.5 Billion Prime Subscription Settlement

An Amazon Prime delivery van parked near the company’s Seattle’s headquarters features a new slogan related to what’s inside the vehicle. (GeekWire Photo / Kurt Schlosser)

TWLN Staff Writer | The Weekly Ledger News | National News

WASHINGTON — Amazon has begun issuing automatic refunds to eligible customers as part of its multibillion-dollar settlement with the Federal Trade Commission (FTC).

According to the FTC, payments to select Prime customers started on Nov. 12, with refunds continuing through Dec. 24. Eligible individuals will receive reimbursement for Amazon Prime subscription fees, capped at $51 per customer.

The refunds stem from Amazon’s historic $2.5 billion settlement with the FTC, which alleged the company used deceptive tactics to enroll consumers in Prime memberships and made cancellation intentionally difficult. FTC Chairman Andrew Ferguson said evidence showed Amazon used “sophisticated subscription traps” that manipulated customers into joining and hindered them from canceling.

Amazon has maintained confidence that it would have prevailed in court but chose to settle to avoid a lengthy legal battle. The company agreed to the terms while denying any wrongdoing.

“We are putting billions of dollars back into Americans’ pockets and ensuring Amazon never does this again,” Ferguson stated.

The FTC also announced a claims process launching next year for eligible Prime members who do not receive an automatic refund during the current November–December payout window. No action is required from customers at this time; the agency will provide further instructions once the claims process is active.

Copyright 2025 TWLN. All rights reserved. The Associated Press contributed to this report.