Amazon is issuing refunds to customers as part of a $2.5 billion settlement with the Federal Trade Commission, addressing allegations of unauthorized purchases made by children and deceptive enrollment in Amazon prime. Millions of impacted shoppers could see money returned to them in the coming months.
The FTC’s complaint centered on amazon’s practices that made it difficult for customers to cancel Prime memberships and allowed children to make purchases without parental consent. The settlement aims to compensate affected users and prevent future issues. The FTC estimates it will publish details on how to file a claim before January 23, initiating a six-month window for submissions.
The first phase of payments will go to Amazon customers who have used their Prime benefits 10 or fewer times during a 12-month period after enrollment. Data on how to file a claim is not yet available, but will be published on the FTC website.