Amazon Issuing $1.5 Billion in Refunds to Millions: Here's What to Know

The $2.5 billion settlement breaks down to $1 billion in civil penalties and provide $1.5 billion in refunds to an estimated 35 million customers affected by the deceptive practices.

Rudy Blalock

Published: 11/20/2025, 2:55:14 PM EST

Amazon Issuing $1.5 Billion in Refunds to Millions: Here's What to Know — The logo of e-commerce company Amazon prime is pictured on a parcel, in Manta, Northwestern Italy, on March 29, 2024. (Marco Bertorello/AFP via Getty Images)

Amazon has begun sending automatic refunds to millions of Prime customers as part of a historic $2.5 billion settlement with federal regulators, the Federal Trade Commission said in an update Monday.

The tech giant was accused of using deceptive practices to trick people into Prime subscriptions while deliberately making cancellation nearly impossible.

When and How Refunds Are Coming

Amazon will distribute the refunds in two stages. Between Nov. 12 and Dec. 24, the company will send automatic refunds to millions of eligible customers through email.

If you qualify for an automatic refund, Amazon will offer you the choice to receive your money through PayPal or Venmo. You'll have 15 days to accept the payment through either service. If you prefer a check instead, simply ignore the email from Amazon. Once you don't claim the digital payment, Amazon will mail a check to your default shipping address on file. Checks must be cashed within 60 days.

Those who didn't accept their automatic refunds through PayPal or Venmo will also receive checks mailed to their default addresses.

How Much Will You Get?

Eligible Prime customers will receive refunds of their subscription fees, up to a maximum of $51. The maximum amount applies to customers who signed up through what the FTC calls "challenged enrollment flows" between June 23, 2019, and June 23, 2025.

Who Qualifies for Automatic Refunds?

To receive an automatic refund, you must meet three requirements. First, you must be an Amazon Prime customer in the United States. Second, you must have signed up for Prime through certain enrollment methods—the universal Prime decision page, shipping selection page, single page checkout, or the Prime Video enrollment flow—between the specified dates. Third, you must have used no more than three Amazon Prime benefits, including Prime Music or Prime Video products offered free to Prime subscribers, in any 12-month period following your enrollment.

If you're an eligible customer but didn't receive an automatic refund between November and December 2025, the FTC says you don't need to do anything right now. Amazon will begin a claims process in 2026 for customers who didn't get automatic refunds during the initial distribution period.

What the Lawsuit Was About

The FTC alleged that Amazon enrolled tens of millions of customers in Prime subscriptions without their knowledge or consent and deliberately made it difficult for people to cancel. According to the settlement, Amazon created confusing user interfaces designed to lead consumers to enroll in Prime without understanding what they were signing up for.

Internal Amazon documents found during the case showed that company executives and employees were aware of these practices.

"Amazon documents revealed that Amazon executives and employees knowingly discussed these unlawful enrollment and cancellation issues, with comments like 'subscription driving is a bit of a shady world' and leading consumers to unwanted subscriptions is 'an unspoken cancer,'" according to the FTC press release.

The $2.5 billion settlement breaks down to $1 billion in civil penalties and provides $1.5 billion in refunds to an estimated 35 million customers affected by the deceptive practices.

"The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription," FTC Chairman Andrew Ferguson said in September when the settlement was announced. "Today, we are putting billions of dollars back into Americans' pockets, and making sure Amazon never does this again."

Watch Out for Scams

The FTC warned on Nov. 17 that scammers are using the settlement to target people. "The FTC is not contacting people about refunds in the Amazon matter. If you get a call from someone who claims to be from the FTC, it's a scam," the agency warned.

The agency emphasized that it will never demand money, make threats, tell you to transfer money, or promise you a prize.

Similarly, no one from Amazon will ever ask you for money to get a refund. Only scammers claim they can get you special access or a guaranteed refund. If you encounter suspicious calls or messages, report them at ReportFraud.ftc.gov.

What Changes Amazon Must Make

As part of the settlement, Amazon must make its subscription practices more transparent and user-friendly. The company must include a clear button allowing customers to decline Prime, clearly disclose all subscription terms during enrollment, and make cancellation as easy as signing up. Amazon also agreed to pay an independent supervisor to monitor compliance with the settlement.

For more information about the refund process, visit SubscriptionMembershipSettlement.com or bookmark ftc.gov/Amazon. The FTC also offers email updates about the refund program on its website.