Current and former Amazon Prime members have just days left to submit a claim in connection with a $2.5 billion settlement.
The case stems from allegations made by the Federal Trade Commission (FTC) in 2023, which accused Amazon of using deceptive practices to enroll customers in Prime and making the cancellation process unnecessarily difficult. In September 2025, the FTC announced a $2.5 billion settlement with Amazon that includes $1.5 billion in refunds for eligible consumers and a $1 billion civil penalty.
Financial expert Alex Beene told Newsweek: “The money is being distributed due to the FTC alleging Amazon used confusing enrolment screens to sign people up for Prime without any form of meaningful consent and then made cancellation difficult.
“For other businesses, the larger message is that subscription growth cannot come at the expense of being more transparent with customers on fees and the renewal process.”
Although Amazon has consistently denied wrongdoing, the company agreed to the settlement, which could affect millions of Prime customers in the U.S.
In a statement issued last September, Amazon said: “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers.
“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership.”
The window to act is closing quickly. Eligible customers who did not receive an automatic payment can submit a claim until July 27, 2026, and may receive up to $51.
According to the FTC, only certain consumers will qualify. That includes U.S. customers who signed up for Prime between June 23, 2019 and June 23, 2025 through one of the enrollment methods challenged in the lawsuit, or who tried to cancel during that period but were unable to do so.
There are additional conditions as well. Eligible customers must have used fewer than ten Prime benefits during a 12-month enrollment period, and they must not already have received an automatic payment during the initial round of distributions sent in November and December 2025.
Amazon began sending claim notices by mail or email in January 2026 to eligible customers who did not receive an automatic refund. Those who qualify can choose to receive payment by check, PayPal or Venmo.
The FTC has also urged people to be careful of fraudsters attempting to exploit the refund process.
The agency says it will not reach out directly to consumers about receiving money from this case.
The agency’s website states: “The FTC is not contacting people about refunds in the Amazon matter.
“If you get a call from someone who claims to be from the FTC, it’s a scam.”