Amazon is about to start sending out refunds to some of its customers, courtesy of a massive federal settlement, CT Insider reports. The company is distributing $1.5 billion in refunds after the Federal Trade Commission accused it of using design tricks on its website and app to nudge people into Prime memberships and make canceling harder than it should be. The payout is part of a broader $2.5 billion deal with regulators that also includes a $1 billion civil penalty. The FTC sued in 2023, alleging "manipulative, coercive, or deceptive" interfaces that "tricked" users into signing up.
An FTC official has said "tens of millions" of consumers were affected. Eligible customers will get back up to $51 in Prime membership fees. Automatic refunds go to people who enrolled through Amazon's "Single Page Checkout" and certain other sign-up paths between June 23, 2019, and June 23, 2025, according to the FTC. Amazon began issuing those automatic refunds on Nov. 12 and continued through Dec. 24, sending emails that give customers 15 days to accept payment via Venmo or PayPal.
Those who don't respond to the email are expected to receive a paper check at the default shipping address on file and will have 60 days to cash it, CBS News reports. People who didn't get an automatic refund at all will have another shot: a separate claims process is slated to open this year, though details have not yet been made public. The FTC says it will update this page when that process begins, and an Amazon spokesperson tells NBC News that those eligible to apply for refunds through that process will be notified by Jan. 23.
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