The Federal Trade Commission said a revised settlement with Amazon expands refunds to more Prime members and raises maximum payments to two hundred dollars.
The agency, identified in settlement documents as the Trump Vance FTC, said Amazon has already issued over eight hundred forty five million dollars in refunds to eligible customers under the agreement.
The revised order increases the benefit‑use threshold that determines eligibility from fewer than ten Prime benefits to no more than twenty benefits used in any twelve month period after enrollment. The FTC said many more members now qualify for automatic payments as a result.
The order requires Amazon to issue refunds for subscription fees, with an overall refunds pool of one point five billion dollars and a separate one billion dollar civil penalty, the FTC said. Under the revised plan, earlier payments capped at fifty one dollars may be supplemented by additional payments of up to one hundred forty nine dollars, bringing the maximum total payment to two hundred dollars per eligible customer.
Eligibility also depends on how a customer enrolled or attempted to cancel Prime. The settlement covers customers who signed up through specified "challenged enrollment flows" or who tried and failed to cancel using the online cancellation flow during the covered enrollment period. The settlement lists the challenged flows as the universal Prime decision page, shipping selection page, single page checkout, and the Prime Video enrollment flow.
Amazon will send refunds automatically. Payments will arrive by mailed check or electronically through PayPal or Venmo, the settlement administration materials say. Consumers do not need to file claims, respond to notices, or complete forms to receive refunds. The settlement administrator can be reached at admin@SubscriptionMembershipSettlement.com and at the settlement website.
Impact And Consumer Guidance
CBS News and the FTC noted that millions of customers are newly eligible under the revised criteria. The FTC said Amazon began issuing automatic disbursements to additional customers and will continue to administer payments to eligible members.
If initial disbursements do not meet a required threshold, Amazon will supplement earlier refunds by automatically issuing an additional one hundred forty nine dollars to consumers who previously received payments, the FTC said. All refunds are to be completed under the revised order by the deadline specified in the settlement.
The FTC warned consumers that it will not contact people to collect fees or to promise refunds. The agency said it will never demand money, threaten consumers, ask for transfers, or promise prizes. The FTC advised that anyone claiming to be from the commission about this matter is likely a scammer and should be reported at ReportFraud.ftc.gov.
The settlement materials stress that Amazon is responsible for administering refunds and that no one from Amazon will ask customers to pay to receive a refund. The settlement website offers additional information and a phone contact for payment help.
