Amazon Prime customers are being urged to claim their share of a $2.5 billion settlement before the upcoming deadline.
Amid the widespread crackdown on 'dodgy' Amazon Fire Sticks, Amazon is paying out to millions of customers after agreeing to a massive settlement. And there's still time to claim your share before the deadline passes.
Last year, the Federal Trade Commission (FTC) accused Amazon Prime of misleading customers by persuading them to sign up for Prime and then making it difficult to cancel.
While the tech giant insisted it hasn't violated any laws, it has agreed to pay $2.5 billion to an estimated 35 million customers.
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"Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers," Amazon stated last year. “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership.”
How to know if you're eligible for a payout
Firstly, the payout isn't as simple as just having a Prime account. In fact, the first round of compensation went to US customers who signed up for a Prime membership between 23 June 2019 and 23 June 2025 and used Prime benefits, such as Prime Music or Prime Video, three or fewer times in any year of their membership.
Furthermore, qualifying customers must have unsuccessfully tried to cancel their Prime subscription, or signed up for Prime through what the documents call a 'challenged enrollment flow.'
The first round of customers automatically received refunds of their subscription fees late last year through their PayPal or Venmo accounts, or if not accepted, via a mailed cheque.
To check your eligibility for the second round, you'll need to complete a form on the Amazon settlement website by 21 July 2026 and then Amazon has 30 days to review it.
“If consumers are eligible to submit a claim but were not eligible for automatic payments, they will be notified between December 24th and January 23, 2026,” Amazon spokesman Mark Blafkin told NBC News.
The Jeff Bezos-owned company has expanded eligibility for the second round so users can qualify if they used Prime benefits 10 times or fewer in a year during the same period.
How much is the payout?
Eligible customers can expect to receive up to $51, though it may be as low as $1. The payments are expected to be disbursed later this year.
The FTC has also warned customers about falling for scams promising Amazon refunds, adding that no FTC representatives will contact you about a refund.
“The FTC is not contacting people about refunds in the Amazon matter," the agency’s website reads. “If you get a call from someone who claims to be from the FTC, it’s a scam.”