In a move that benefits millions of shoppers, the Federal Trade Commission (FTC) has approved an amendment to Amazon’s $2.5 billion settlement. The revised order widens eligibility and raises the maximum payment to $200, ensuring that more Prime members receive compensation for the alleged enrollment and cancellation practices.
Background on the settlement
Last year, Amazon settled FTC allegations that it misled customers into joining its Prime membership program and then made it difficult to cancel. While the e‑commerce giant did not admit wrongdoing, it agreed to pay $1.5 billion directly to eligible consumers and $1 billion in civil penalties.
Payments began in September 2025, but by the end of that year Amazon had disbursed roughly $845 million, leaving about $665 million still to be paid out.
What the amendment changes
The FTC’s updated order expands the pool of qualifying customers and increases the per‑consumer cap from $51 to $200. Those who already received the original $51 will automatically receive an additional $149, bringing their total to $200. Consumers who were previously ineligible now qualify for the full $200 payment.
All future payments will be distributed automatically, eliminating the need for customers to file claims or submit additional documentation. The FTC says the first round of the expanded payments will begin on October 1 2026, with funds delivered via PayPal, Venmo, or mailed checks.
Potential for further payouts
The amended order also includes a provision for any remaining settlement funds. If money is still left in the $1.5 billion pool after the second round of payments, the FTC will allocate those funds among all eligible consumers in a third round, scheduled for April 2027.
This structure ensures that the settlement continues to benefit consumers without additional effort on their part, reflecting the FTC’s commitment to protecting shoppers from deceptive practices.
Impact on consumers
For Prime members who felt trapped by automatic renewals, the expanded refunds represent a tangible acknowledgment of their concerns. The automatic distribution model also reduces administrative burdens, allowing consumers to receive their money quickly and securely.
Industry observers note that the settlement underscores the importance of clear enrollment disclosures and easy cancellation processes—principles that align with both consumer‑rights advocates and responsible business practices.
What’s next
Amazon has indicated it will comply with the FTC’s revised order and continue to monitor its enrollment procedures. The FTC will oversee the distribution of the remaining funds and ensure that all eligible customers receive their payments as scheduled.
Consumers who believe they may be eligible should watch for communications from Amazon beginning in October and verify their payment method through the channels listed in the settlement notice.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
