Amazon has started sending checks to customers as part of a $2.5 billion lawsuit. According to CT Insider, Amazon is distributing $1.5 billion to eligible customers while also paying a $1 billion civil penalty as part of its settlement with the Federal Trade Commission (FTC).
Why did the FTC file a lawsuit against Amazon?
The FTC filed a lawsuit against Amazon in 2023, saying the e-commerce company used “manipulative, coercive, or deceptive user-interface designs” to deceive consumers. Per the lawsuit, Amazon tricked people into enrolling for its Prime services and made it difficult for customers to cancel their subscription.
In an email to CT Insider, FTC Deputy Director of Public Affairs Christopher Bissex said “tens of millions” of customers were affected by Amazon’s deceptive tactics.
Who is eligible to receive payments from Amazon?
Eligible users include people who signed up for a Prime membership between June 23, 2019, and June 23, 2025, using the company’s “Single Page Checkout” link. The settlement also states that people may be eligible if they only used Prime Benefits less than five times during that time period. Amazon Prime customers may get a maximum of $51 from the lawsuit, per WFAA.
When is Amazon sending payments from its settlement with the FTC?
Amazon started sending payments for automatic refunds to eligible Prime customers on Nov. 12 and continued to send funds in December, per CT Insider. The company has been sending emails to customers, telling them they have 15 days to accept their refunds. Automatic payments will be sent through Venmo or PayPal. People who didn’t get their refunds through email will get a mailed check.
Those who didn’t get an automatic refund between November and December can file for a claim this year. Checks will be sent to the shipping addresses people listed on their Prime subscription, and it must be cashed within 60 days.