Economy

Amazon to Send Prime Refunds Under $2.5 Billion Settlement

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Amazon will pay eligible Prime members as part of a $2.5 billion settlement tied to federal claims that it enrolled people in Prime without clear consent and made it hard to cancel. The company agreed to the settlement in September after a 2023 FTC lawsuit. Amazon did not admit or deny the FTC’s claims.

Under the deal, Amazon will provide $1.5 billion in refunds, with payments capped at $51 per person. The FTC says the first set of automatic payments will be completed by Dec. 24.

To qualify, customers must live in the United States and have signed up for Prime between June 23, 2019 and June 23, 2025. There are two groups of eligible subscribers.

The first group includes people who joined through a “challenged enrollment flow” and used three or fewer Prime benefits in any 12-month period. Examples of challenged flows include the Universal Prime Decision Page, the Shipping Option Select Page, the Prime Video enrollment flow, and the Single Page Checkout. Members in this group will receive payments automatically and do not need to submit a claim.

The second group covers customers who joined via a challenged enrollment flow or who tried to cancel but did not complete the cancellation process during the five-year window, and who used 10 or fewer Prime benefits in any 12-month period while enrolled. The settlement counts an attempt to cancel as either entering but not finishing the online cancellation or taking a Save Offer during the cancellation process.

After automatic payouts are finished, Amazon will send claim forms to other eligible customers. Recipients will have 180 days from the date they receive the form to submit a claim to Amazon.

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8 Comments

  • Wow, I cant believe Amazon is refunding $2.5 billion to Prime members! Do you think they should have to pay more?

  • Should we really be celebrating Amazons refund settlement? Or is it just a drop in the bucket for a giant corporation? 🤔

  • Wow, this Amazon Prime refund settlement is huge! Do you think they should compensate customers more for the inconvenience caused?

  • I cant believe Amazon is only refunding $2.5 billion to Prime customers! Shouldnt it be more for all the inconvenience? 🤔

  • Do you think Amazon should have to refund Prime members for overcharged fees? Lets discuss! 🤔📦 #AmazonSettlement #PrimeRefunds

  • Wow, can you believe the amount Amazon has to refund? I wonder if this will impact their future pricing strategies.

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