New Delhi, Jan. 6 -- Amazon has begun issuing refunds to eligible Prime members as part of a $2.5 billion settlement with the United States Federal Trade Commission (FTC) over allegations that it misled customers into enrolling in its Prime subscription service and made cancellation unduly difficult.

Under the terms of the settlement reached in September 2025, Amazon agreed to pay $1.5 billion in refunds to affected customers, with the remaining $1 billion allocated as a civil penalty to the government. Amazon neither admitted nor denied the FTC's allegations. In a statement at the time, the company said: "Amazon and our executives have always followed the law."

Automatic refunds began on 12 November 2025 and continued through 24 Decemb...