Millions more Amazon Prime subscribers in the US are set to receive automatic restitution payments starting October 1 as part of an expanded federal settlement addressing deceptive billing and cancellation practices.

The upcoming distribution phase broadens eligibility to consumers who used between 11 and 20 Prime benefits within a single year – a demographic previously excluded from earlier compensation rounds.

The payments stem from a landmark $2.5 billion resolution between Amazon and the Federal Trade Commission (FTC), which alleged that the company enrolled consumers without explicit consent and intentionally complicated the cancellation process.

Under the original terms, Amazon agreed to pay a $1 billion civil penalty alongside $1.5 billion dedicated to direct consumer redress.

To qualify, subscribers must be based in the US and either enrolled through specific disputed checkout screens or attempted unsuccessfully to cancel their memberships between June 23, 2019, and June 23, 2025. Eligible individuals do not need to fill out any claim forms or complete paperwork. Funds will be disbursed automatically via PayPal, Venmo, or mailed paper cheques.

A federal court recently approved modifications that raise the maximum potential payout per customer from $51 to $200. Consumers who previously received the lower capped amount may also qualify for supplemental top-up payments of up to $149.

Federal officials emphasise that recipients must cash or redeem electronic transfers and cheques within 60 days of issuance. With Amazon having already distributed over $845 million by September, the full schedule of payouts under the modified agreement is slated to run through until April 2027.

Regulators have also urged consumers to remain vigilant against potential scams, reminding the public that neither the FTC nor Amazon will ever demand personal financial information or require fees to release settlement funds.

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