UPDATE: Amazon is rolling out automatic refunds to millions of Prime subscribers after a landmark $2.5 billion settlement with the Federal Trade Commission (FTC). This decisive action addresses allegations that Amazon enrolled customers in Prime subscriptions without their consent and made cancellation unnecessarily complicated.
The settlement, finalized under the Trump-Vance FTC, mandates Amazon to pay $1.5 billion in customer refunds and a $1 billion civil penalty. Eligible Prime members may receive refunds of up to $51 as part of this process.
URGENT TIMELINE: Refunds will be distributed in two phases. The first phase begins on November 12 and runs through December 24, 2023. During this period, eligible customers will automatically receive refunds via PayPal or Venmo. Those who prefer a mailed check can simply ignore the digital payment, and Amazon will send a check to their default shipping address. Refunds issued by check must be cashed within 60 days.
A second phase is slated for 2026, which will allow eligible customers who do not receive an automatic refund to submit claims, ensuring that everyone impacted has a chance to recoup their funds.
The FTC has also issued a WARNING to consumers about potential scams related to these refunds. Officials will not reach out to customers demanding payment or threatening legal action. If anyone receives such messages, they are urged to report them immediately.
To qualify for refunds, U.S. Prime subscribers must have signed up through specific “challenged enrollment flows” between June 23, 2019, and June 23, 2023, and must have used no more than three Prime benefits in the 12 months following their enrollment.
For detailed information, customers can visit www.SubscriptionMembershipSettlement.com or bookmark ftc.gov/Amazon for updates.
This major development not only impacts millions of consumers directly but also highlights ongoing scrutiny of large corporations’ practices. As Amazon takes these corrective actions, customers are encouraged to stay vigilant and informed.
