Amazon Checks Mailed: Customers Get Payments from $1.5B Settlement
UPDATE: Amazon customers are receiving checks in the mail as part of a $1.5 billion settlement stemming from allegations of unlawful practices associated with its Prime membership. These checks are legitimate and can be cashed safely, putting to rest concerns about potential fraud.
The payments began rolling out in November, with the final checks expected to be mailed by December 24, 2025. This settlement follows a significant lawsuit by the Federal Trade Commission (FTC), which accused Amazon of making it difficult for users to cancel their Prime subscriptions and misleading them into enrollment through ambiguous checkout processes.
Eligible customers include those who signed up for Prime through Amazon’s “Single Page Checkout” between June 23, 2019, and June 23, 2025. While the exact number of recipients remains unclear, Amazon processes approximately 8.8 million orders daily. Each eligible customer could receive up to $51.
However, there are specific criteria for receiving these payments. Customers must have attempted to cancel their Prime memberships or enrolled via a problematic sign-up method. They also need to have utilized four or fewer Prime benefits during the six-year period. These benefits include services like Prime 2-day shipping, Amazon Prime Video, or Amazon Music. If payouts fall short of the $1 billion mark mandated for customer reimbursements, the FTC will broaden the eligibility criteria.
The FTC’s lawsuit against Amazon, filed in U.S. District Court in Seattle two years ago, alleged that the company violated the Restore Online Shoppers’ Confidence Act. This law is designed to protect consumers by ensuring clear communication regarding online charges. Although Amazon has denied any wrongdoing, the FTC claims the company deliberately obscured the Prime subscription process to increase enrollments.
Amazon Prime offers subscribers various perks, including expedited shipping and access to streaming services for an annual fee of $139 or $14.99 monthly. With over 200 million members, Prime is a crucial revenue stream for Amazon, contributing to more than $12 billion in net revenue from subscription services in the past year, reflecting a 12% increase from the previous year.
Amazon asserts it provides clear information regarding Prime’s terms and offers straightforward cancellation methods via phone, online, and chat services. The company acknowledged that occasional frustrations may arise but maintained that the enrollment process is transparent.
As checks continue to arrive in mailboxes, customers are encouraged to check their eligibility and understand the conditions set by the FTC. The impact of this settlement may extend beyond immediate payments, potentially altering how Amazon handles its subscription services in the future.
Stay tuned for further updates on this developing story as more payments are processed and customer reactions unfold.
