UPDATE: Amazon customers are receiving real checks in the mail as part of a $1.5 billion settlement stemming from allegations by the Federal Trade Commission (FTC). This unexpected financial windfall is generating buzz and confusion, with many wondering about the legitimacy of the checks.
Checks began distribution in November 2023, with the final batch mailed out on December 24, 2023. Eligible customers can receive up to $51 each. This settlement addresses claims that Amazon misled users into enrolling in Prime memberships while making cancellations unnecessarily complicated.
Eligible recipients include those who signed up for Prime via the “Single Page Checkout” from June 23, 2019, to June 23, 2025. It remains unclear how many customers are affected, but Amazon processes approximately 8.8 million orders daily. To qualify for payment, customers must have attempted to cancel their Prime subscription during the specified period or enrolled through alternative signup methods, including Prime Video.
The FTC’s investigation revealed that customers who utilized four or fewer Prime benefits—like two-day shipping or access to streaming services—are eligible. If the payouts do not reach the $1 billion threshold, the FTC will expand eligibility criteria to ensure the full amount is distributed.
The FTC’s lawsuit against Amazon, initiated two years ago, accused the company of multiple legal violations, including breaches of the Restore Online Shoppers’ Confidence Act. This law is designed to ensure transparency in online transactions. Amazon has denied wrongdoing, asserting that it provides clear terms and easy cancellation options for Prime memberships, which cost $139 annually or $14.99 monthly.
Amazon Prime is a cornerstone of the company’s business model, boasting over 200 million members globally. The company reported a net revenue of more than $12 billion from subscription services in July 2023, marking a 12% increase year-over-year.
The FTC argues that Amazon intentionally obscured the process of purchasing items without enrolling in Prime, leading to consumer frustration. In some cases, the checkout process included buttons that did not clearly indicate a Prime enrollment. Furthermore, the FTC complaint states that Amazon leadership delayed or rejected user-friendly changes that would facilitate canceling subscriptions.
As checks continue to arrive in mailboxes, customers are encouraged to verify their eligibility and cash their checks without concern. This development serves as a reminder of the ongoing scrutiny large corporations face regarding customer practices.
Stay tuned for further updates on this developing story as the FTC and Amazon continue to navigate the implications of this significant settlement.
