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How and when you'll get a refund from the Amazon Prime, FTC settlement

How and when you'll get a refund from the Amazon Prime, FTC settlement

Summary

Amazon will pay $2.5 billion to settle claims by the Federal Trade Commission (FTC) that it enrolled customers in Prime subscriptions without their consent and made it hard to cancel them. Customers affected by this will get refunds, with up to $1.5 billion going directly to Prime subscribers, capped at $51 per person. Amazon has also agreed to make it easier for customers to understand and cancel their subscriptions.

Key Facts

  • Amazon will pay a total of $2.5 billion in penalties and refunds.
  • The FTC alleges that Amazon enrolled customers in Prime without consent and made cancellation difficult.
  • Prime subscribers will receive up to $1.5 billion in refunds, capped at $51 per person.
  • Refunds will be given in two waves, and customers do not need to submit claims to get the initial payout.
  • The refund covers customers who signed up for Prime between June 2019 and June 2025.
  • Amazon will improve its disclosures and make it easier for customers to cancel their Prime subscriptions.
  • The FTC lawsuit was filed in June 2023 under FTC chair Lina Khan.
  • Amazon has agreed to an independent review to ensure compliance with the settlement terms.
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