Amazon to Issue Up to $200 Refunds Under Expanded FTC Settlement

Amazon is distributing refunds to eligible customers under a revised $2.5 billion agreement with the Federal Trade Commission (FTC), settling allegations that the company deceptively signed consumers up for its Prime subscription service. The FTC announced last month that the scope of the settlement has widened, increasing the maximum refund amount from $51 to $200 and qualifying more consumers for payouts.

Under the terms of the deal, Amazon has agreed to allocate $1.5 billion for customer refunds and pay a $1 billion civil penalty. As of September, the retailer had already returned more than $845 million to shoppers. The expansion now covers members who signed up between June 23, 2019, and June 23, 2025, and utilized up to 20 Prime benefits annually. This is a significant shift from the original September 2025 order, which limited eligibility to customers who used fewer than 10 benefits over a twelve-month period.

Automatic payments to the newly eligible population began on Thursday. According to the FTC, millions of customers who utilized up to 20 Prime benefits are now eligible for payouts reaching $200. If the total refunds issued to this group do not meet a specific threshold by February 2027, Amazon will automatically disburse an additional $149 to consumers who had already received refunds under the initial settlement terms. All eligible individuals are expected to receive their refunds by April 2027.

Payments will be processed electronically via Venmo or PayPal, or by mail in the form of checks. The FTC emphasized that consumers are not required to submit claims, respond to notices, or complete any paperwork. Amazon is solely responsible for administering the payouts, and the agency is not contacting customers directly. Officials warned that anyone claiming to represent the FTC regarding this settlement is likely a scammer.