Amazon customers may start seeing refund checks this month following a major settlement with the U.S. Federal Trade Commission (FTC). The total settlement is worth $2.5 billion, and a large portion of that money is going directly back to customers.
Out of the full amount, Amazon is returning $1.5 billion to consumers, while also paying a $1 billion civil penalty to the government. This marks one of the largest consumer refund settlements in recent years.
Why Amazon Is Paying Customers
The FTC filed a lawsuit against Amazon in 2023, accusing the company of using confusing and misleading design practices. According to the complaint, these designs made it too easy for users to sign up for Amazon Prime and too hard to cancel it.
The FTC said these practices affected tens of millions of people. The settlement aims to return money to customers who may have been charged for Prime memberships they did not fully intend to keep.
Who Is Eligible for a Refund
Eligible customers are current or former Amazon Prime users who signed up through certain checkout methods. This includes people who enrolled using Amazon’s “Single Page Checkout” or similar links.
To qualify, the sign-up must have happened between June 23, 2019, and June 23, 2025. Eligible customers can receive refunds of their Prime subscription fees, up to a maximum of $51.
How Amazon Is Sending Refunds
Amazon began issuing automatic refunds on November 12 and continued through December 24. Customers who qualified were notified by email and had 15 days to accept their refund.
Most automatic refunds are being sent through Venmo or PayPal. If you received an email about a refund, it’s important to act quickly so you don’t miss the deadline.
What If You Didn’t Respond to the Email
Customers who did not accept their refund through email should receive a paper check instead. Amazon is mailing these checks to the default shipping address listed on the customer’s Prime account.
Once the check arrives, it must be cashed within 60 days. If your address has changed recently, it’s worth keeping an eye on your mail just in case.
Missed the Automatic Refund? There’s Still Time
If you did not receive an automatic refund between November and December, you are not out of options. Amazon will open a formal claims process for eligible customers.
According to the FTC, this claims process will begin in 2026. Customers who qualify will be able to submit a claim to receive their refund at that time.
What Customers Should Do Now
If you think you may be eligible, check your email and payment apps like PayPal or Venmo for refund notices. Also, watch your mail for a check from Amazon over the coming weeks.
This settlement is a reminder to review subscriptions regularly and understand how sign-ups and cancellations work. A few minutes of attention now could put real money back in your pocket.