Millions of Amazon customers could soon receive a refund of up to $51, but who is eligible and how do you receive the money?
The refunds are part of a surprise $2.5 billion settlement related to a Federal Trade Commission lawsuit alleging the online retail giant tricked customers into signing up for its Prime memberships and made it exceedingly difficult for them to cancel after doing so.
The refunds are set to go out before the end of the year, but a second phase will take place in 2026 — and that could require action.
The case stems from a 2010 law known as the Restore Online Shoppers’ Confidence Act, which was designed to ensure that people know what they’re being charged for online.
The FTC said the refund amount for Amazon customers exceeded the agency’s projections. Amazon contended it would win the case, but instead opted for a quick resolution over the potential for years of trial and appeals.
Are you eligible?
According to the FTC, $1.5 billion in refunds will go to an estimated 35 million people who were impacted by “unwanted Prime enrollment or deferred cancellation.”
Some customers will be eligible for automatic refunds, including those who signed up for a membership through a challenged enrollment flow between June 23, 2019, and June 23, 2025, and used no more than three Prime Benefits in any 12-month period, according to court documents.
Other Prime users will be eligible, but they won’t receive refunds automatically. Those individuals will need to qualify, then go through a separate claims process.
In order to qualify, members must have also signed up for a Prime membership through a challenged flow or unsuccessfully tried to cancel their subscription, court filings stated.
To qualify, individuals must not have used more than 10 Prime Benefits during any 12-month period of enrollment.
How will the refunds be paid?
Amazon will pay refunds in two stages, according to the FTC.
The first will be the automatic refund process, which will go out by Dec. 25, 2025.
The second takes place in 2026, when Amazon will begin its claims process for eligible Prime customers.
Once the automatic payouts are completed, a form will be sent to eligible consumers within 30 days, according to the court records. At that time, customers will be able to say if they were unintentionally enrolled or unsuccessfully attempted to cancel their Amazon Prime subscription.
Customers who receive the form will then have up to 180 days to submit it. Submissions can be sent via electronic mail, first-class postage pre-paid mail or the settlement website.
Within 30 days of receiving the claim, Amazon will then decide if it is valid.
Under the terms of the agreement, Amazon is required to create a website, which will include further instructions about the settlement.
How much could you receive?
The refund received will total the amount of Prime membership fees paid during the duration of the subscription, capped at $51.
Those who submit valid claims regarding unintentional enrollment will be refunded the total of Amazon Prime membership fees, also at a maximum of $51.
from NBC Chicago https://www.nbcchicago.com/news/business/could-you-be-getting-up-to-51-from-amazon-whos-eligible-under-2-5b-settlement/3840950/
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