Amazon Prime settlement expanded to $200 maximum payout per customer

The Federal Trade Commission announces a revised order expanding the $2.5 billion Amazon Prime settlement. The update raises the maximum individual payout from $51 to $200 and expands eligibility to millions of U.S. consumers who used between 11 and 20 Prime benefits. Future payments will be distributed automatically starting October 1, 2026, via Venmo, PayPal, or check, resolving allegations that Amazon deceptively enrolled users and obstructed cancellations.

FTC Allegations and Settlement Terms

• ▪The $2.5 billion Amazon Prime settlement reached in 2025 includes $1.5 billion allocated for consumer refunds and a $1 billion civil penalty
• ▪Amazon denied any wrongdoing but agreed to the $2.5 billion Amazon Prime settlement to resolve the Federal Trade Commission's allegations
• ▪The Federal Trade Commission alleged that Amazon enrolled millions of consumers in Prime subscriptions without consent and made cancellation difficult.

Revised Eligibility Criteria

• ▪The Federal Trade Commission's revised $2.5 billion Amazon Prime settlement expands eligibility to consumers who used between 11 and 20 Prime benefits during a 12-month period
• ▪To qualify for the Amazon Prime settlement, consumers must have unintentionally enrolled or tried to cancel through challenged Amazon enrollment flows, including the universal Prime decision page
• ▪Under the revised order, eligible U.S. consumers must have signed up for Amazon Prime between June 23, 2019, and June 23, 2025.

Payout Details and Distribution

• ▪The next phase of automatic payments begins October 1, 2026, while supplemental payouts of $149 are scheduled to start by April 2027.
• ▪The revised settlement order raises the maximum individual payout cap for eligible Amazon Prime customers from $51 to $200.
• ▪Under the FTC's revised $2.5 billion Amazon Prime settlement order, future settlement payments will be distributed automatically via Venmo, PayPal, or mailed checks without requiring claims
• ▪If settlement funds remain by February 2027, Amazon will provide additional automatic payments of $149 to consumers who previously received $51.

Federal Trade Commission Announcements

• ▪On September 17, 2026, the Federal Trade Commission announced a revised order expanding the $2.5 billion Amazon Prime class action settlement reached in 2025
• ▪The Federal Trade Commission warned consumers about scammers exploiting the $2.5 billion Amazon Prime settlement, stating that the agency will never contact them about refunds

Distribution of Settlement Funds

• ▪As of September 2026, Amazon has distributed more than $845 million in redress payments to consumers under the Amazon Prime settlement
• ▪The first group of eligible Amazon members should have received their automatic settlement payments between November 12 and December 24, 2025.

Debatable claims

• ▪The FTC should mandate that canceling a digital subscription be as easy as signing up
• ▪The FTC's $2.5 billion settlement is insufficient to deter Amazon's deceptive practices