Nearly 40 million Amazon customers can claim up to $51 from a $2.5 billion settlement — but the deadline is July 27
Nearly 40 million Amazon customers can claim up to $51 from a $2.5 billion settlement — but the deadline is July 27.
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Time is running out to file a claim for a refund in Amazon's $2.5 billion settlement over 'deceptive' Prime signups. Eligible customers have until July 27 to submit the paperwork for a refund, assuming they're eligible.
The retail giant settled (1) the case last September, three days after the trial had gotten underway. The Federal Trade Commission had alleged Amazon tricked nearly 40 million customers into signing up for Prime and made cancelling that subscription especially challenging.
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The day before the trial began, the company insisted (2) "neither Amazon nor the individual defendants did anything wrong – we remain confident that the facts will show these executives acted properly and we always put customers first." While no admission of guilt was given, Amazon settled days later.
Under the terms of that agreement, Amazon was required to pay a $1 billion civil penalty and provide $1.5 billion in refunds back to consumers, the FTC said in a media release (3). The $1.5 billion in refunds is the second largest restitution amount every obtained by the FTC, the organization said.
Here's what you need to know about getting a piece of that refund.
To be eligible, you have to have a Prime subscription in the U.S. And you'll have to meet one of two additional criteria. Either you must have signed up through a "challenged enrollment flow," a pathway the government determined was deceptive or confusing. (These were found in places such as the shipping selection page or single-page checkout). Alternatively, you could have tried and failed to cancel your membership between June 23, 2019, and June 23, 2025.
You also can not have used more than 10 Amazon Prime Benefits in any 12-month period during which you were enrolled.
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July 27 is the claim deadline. You can do so at the (4)settlement website (4).
The amounts will vary, but you can receive up to $51 in refunded membership fees. Refunds are being sent via check, PayPal or Venmo.
Many have. The bulk of eligible customers received an automatic refund from Amazon in November or December of (5)last year (5). If you feel you're owed one, but haven't received it yet, head to the settlement website to file a claim.
The FTC alleged Amazon had created a "labyrinthine (6)" cancellation process, which was designed to deter customers from finishing the act of cancellation. Customers wishing to cancel their Prime subscription, it said, were required to "navigate a four-page, six-click, fifteen-option cancellation process." Warnings on missing deals and discounts were also included to discourage customers.
Amazon has since changed its cancellation policies. A standalone (7)cancellation page (7) lets members see the options available to them on pausing or ending their membership.
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