Amazon Issuing $2.5B in Refunds to Eligible Prime Customers to Settle FTC Suit

Amazon is paying out $2.5 billion to eligible Prime customers to settle an FTC lawsuit that alleged it enrolled people without their consent.

Eligible Amazon Prime members will soon see payments from the online retail giant as part of a $2.5 billion settlement stemming from federal allegations that it misled customers.

In September, Amazon agreed to make the payouts in response to a 2023 Federal Trade Commission lawsuit that alleged it enrolled customers in Prime without their consent, and then made it hard for them to cancel their membership.

While Amazon did not admit or deny the FTC’s allegations, under the terms of the settlement, the company agreed to offer $1.5 billion in refunds to subscribers, capped at $51 per person.

The first wave of payments will be automatically distributed and finished by Dec. 24, according to the FTC. The payouts come on ...