URGENT UPDATE: Amazon customers are receiving checks in the mail as part of a staggering $1.5 billion payout from a settlement with the Federal Trade Commission (FTC). This is not a scam; these checks can be cashed safely.
The payments stem from a $2.5 billion settlement announced after allegations surfaced that Amazon misled users into enrolling in Prime memberships and made cancellation unnecessarily difficult. Checks began going out in November, with the final batch expected to be mailed by December 24, 2023.
Who qualifies for these payouts? Eligible Prime customers include those who signed up via Amazon’s “Single Page Checkout” between June 23, 2019, and June 23, 2025. While it’s unclear how many customers will be affected, Amazon processes around 8.8 million orders per day.
Customers can expect to receive up to $51 each, but eligibility comes with conditions. Payments will only be made to those who attempted to cancel their Prime subscription during the specified timeframe or signed up through alternative enrollment methods. Furthermore, recipients must have used four or fewer “Prime Benefits” within the six-year period. These benefits include Prime’s 2-day shipping and access to streaming services like Prime Video and Amazon Music.
If the total payouts fall short of the $1 billion threshold, the FTC will extend eligibility criteria to ensure that at least that amount is distributed.
The FTC initiated the lawsuit against Amazon in Seattle two years ago, alleging a history of violations of consumer protection laws, including the Restore Online Shoppers’ Confidence Act. Amazon has denied any wrongdoing in the settlement.
Amazon Prime, which offers perks like expedited shipping and video streaming for an annual fee of $139, boasts over 200 million members worldwide. The company reported a robust $12 billion in net revenue from subscription services, marking a 12% increase year-over-year.
In their defense, Amazon stated that they provide clear explanations of Prime’s terms before charging customers, emphasizing easy cancellation methods. However, the FTC alleges that the company intentionally made it difficult for users to avoid automatic Prime enrollment during purchases.
According to the FTC’s complaint, many customers faced challenges when trying to unsubscribe, with leadership reportedly hindering efforts to simplify the cancellation process.
This situation raises significant concerns about consumer rights and the transparency of subscription services. For affected customers, cashing these checks can serve as a small victory against deceptive practices.
Stay tuned for more updates on this developing story as the impact of this settlement unfolds.
