FTC Enhances Consumer Refunds in Amazon Prime Settlement
The Federal Trade Commission has announced an expansion of consumer payments related to its $2.5 billion settlement with Amazon, addressing deceptive enrollment practices in Prime subscriptions.
16.09.2026 | Federal Trade Commission
The Federal Trade Commission (FTC) has revealed that Amazon will accelerate and expand payments to consumers as part of a settlement from last year, which totaled $2.5 billion. This settlement addressed allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and made it difficult for them to cancel.
As part of the September 2025 settlement, Amazon was mandated to pay up to $1.5 billion in redress to consumers affected by its deceptive practices, alongside a $1 billion civil penalty. By September 2026, Amazon had already issued over $845 million in redress payments.
This week, a federal court approved a joint motion from the FTC and Amazon to enhance the redress process. The revised order allows more consumers to qualify for refunds, increases the maximum payment cap from $51 to $200, and automates the payment distribution, removing the need for consumers to submit claims or paperwork.
Under the original settlement, refunds were limited to consumers who used fewer than 10 Prime benefits in a year. The new order expands eligibility to those who used between 11 and 20 benefits, with automatic refunds starting on October 1, 2026. Payments will be made electronically or via mailed checks without requiring any action from consumers.
Furthermore, if the total consumer-accepted payments do not meet the required threshold by February 2027, Amazon will issue additional automatic payments of up to $149 to those who previously received refunds, bringing the total potential payment to $200. These supplemental payments are expected to begin by April 2027.
Consumers are advised to refer to the FTC’s Amazon refund page for more information on the refund process, as Amazon is responsible for administering the redress program. The FTC will not contact individuals regarding refunds, and any unsolicited communication claiming to be from the FTC should be treated as a scam.
