(NEXSTAR) – It’s been more than a month since Amazon arrived $2.5 billion settlement The Federal Trade Commission (FTC) accused the online retailer of using “deceptive practices” to enroll millions of customers for paid Prime subscriptions.
So, when will you get your share of the settlement?
Ultimately, it depends on whether you qualify. However, the federal agency has not indicated when the payments may be distributed.
Here’s something worth knowing.
What is the $2.5 billion agreement about?
The FTC’s allegation is two-pronged: First, Amazon signed up “millions of consumers” for Prime subscriptions without their permission, then “intentionally made it difficult for consumers to cancel.”
According to the FTC’s September AnnouncementNot only will Amazon have to pay $2.5 billion (more on that in a moment), the company must “cease unlawful enrollment and cancellation practices for Prime.”
This includes creating “a clear and conspicuous button for customers to decline Prime” and removing the “No, I don’t want free shipping” button. Amazon needs to outline the cost of Prime during the subscription process, as well as when the customer will be charged, the date and frequency of which it will be auto-renewing, and how to cancel.
Several Amazon executives were also accused of knowingly misleading affected customers and violating the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
one in statement “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovation for customers,” the company said in a release last month. “We work incredibly hard to make it clear and simple for customers to sign up or cancel their Prime membership, and to provide substantial value to our millions of loyal Prime members around the world. We will continue to do that, and for years to come.” We look forward to what it will do for Prime members.”
How much will I get from the $2.5 billion settlement?
It depends on whether you qualify, but first, it’s worth noting that the entire $2.5 billion of the settlement is not going back to affected customers.
The FTC says $1 billion will go to civil penalties, leaving $1.5 billion to refund consumers. there are three requirements You have to meet it to qualify for any portion of that money.
First, of course, you must be a Prime member in the U.S. Second, you must either sign up for Prime with Amazon’s “challenged enrollment flow” (involving signing up through the universal Prime decision page, shipping selection page, single page checkout, or Prime Video enrollment flow) or attempted to cancel your membership but failed — either having to have happened between June 23, 2019, and June 23, 2025. Needed. And finally, you must use no fewer than three Prime benefits — like Prime Music or Prime Video — during any one-year period after becoming a Prime member.
If you meet all three criteria, you can receive a refund of your membership fee, although the FTC says the limit will be $51.
Do I need to apply to get my refund?
for now no.
According to the FTC, refunds will be automatically sent by Amazon before Christmas Day this year.
The FTC says the claims process will be launched for eligible Prime customers next year. Additional details about this procedure have not yet been released.
Ultimately, if you think you qualify, you’ll have to wait until December 25th to see if you receive payment or a notification from Amazon about a refund. Otherwise, you’ll probably have to wait for the claims process to open.
Meanwhile, Amazon is Already facing another trialLast week, two people sued the retailer for advertising “fake sales” and misleading customers during Prime Day events.
A spokesperson declined to comment on the lawsuit when contacted by Nexstar.
Nexstar’s Jeremy Tanner contributed to this report.
