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Amazon distributing payments in $2.5 billion agreement regarding Prime subscriptions

Amazon distributing payments in $2.5 billion agreement regarding Prime subscriptions

(NEXSTAR) — If you’ve found yourself unintentionally enrolled in Amazon Prime, it might be a good idea to check your inbox. Amazon has started refunding part of a $2.5 billion settlement reached with the Federal Trade Commission (FTC) earlier this year.

The FTC accused Amazon of using “deceptive methods” to enroll customers in paid Prime memberships, complicating the cancellation process. Back in September, they mandated that Amazon not only pay the settlement but also stop these unlawful enrollment and cancellation practices.

This includes the introduction of a clear cancellation button for Prime memberships, a step toward transparency.

In a statement, Amazon insisted that it has always adhered to the law, emphasizing that the settlement would enable them to prioritize innovation and enhance the experience for Prime members globally. They expressed commitment to improving how customers can sign up for and opt out of Prime.

However, the FTC has confirmed that refunds are being automatically processed for those affected. It’s important to note that not all of the $2.5 billion will be directed to customers. The breakdown shows that $1 billion is allocated for civil penalties, while $1.5 billion is set aside for consumer refunds. There are specific requirements to qualify for a refund.

To be eligible, you need to be a US Prime member, have either participated in Amazon’s “Registration Request Flow” or attempted to cancel your subscription unsuccessfully between June 23, 2019, and June 23, 2025. Lastly, you should have used fewer than three Prime benefits (like Prime Music or Prime Video) during the first year of your membership.

If you meet the criteria, you could receive a refund capped at $51 for your subscription fee, as stated by the FTC.

“Eligible consumers are set to receive up to $51 of their actual Prime membership fees, minus any previous refunds, credits, or chargebacks,” the FTC noted.

Once notified, you’ll have 15 days to accept the refund, which can be sent to your PayPal or Venmo account. If you prefer a paper check, you should not respond to Amazon’s emails, as funds will be dispatched to the default shipping address linked to your Prime account. The FTC advises cashing any checks within 60 days.

If you haven’t seen any payment yet, don’t stress. Refund processing will run until December 24, according to the FTC.

The billing process for eligible Prime customers is set to start next year, although further details on this have yet to be disclosed.

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