Millions of Amazon Prime customers could soon see money returned to them as part of a federal settlement, and some East Tennessee residents may be among those eligible.

The Federal Trade Commission says Amazon began issuing a new round of automatic refund payments on Oct. 1, 2026 under a settlement involving allegations that the company enrolled customers in Prime without proper consent and made cancellations unnecessarily difficult. Amazon agreed to provide up to $1.5 billion in consumer refunds as part of the broader $2.5 billion settlement. 

Who may qualify

Under the revised settlement terms, a customer may be eligible if all three of these conditions apply:

• They are a U.S.-based Amazon Prime customer.
• They enrolled through one of the Prime sign-up processes challenged by the FTC, or tried unsuccessfully to cancel Prime online, between June 23, 2019 and June 23, 2025.
• They used no more than 20 Prime benefits during any 12-month period after enrollment. Those benefits can include services such as Prime Video or Prime Music. 

The latest round expands eligibility to customers who used between 11 and 20 Prime benefits in a 12-month period. Those customers were not included in earlier automatic-payment phases. 

How much could customers receive?

Eligible customers can receive refunds for Prime membership fees, with a maximum total payment of $200.

Earlier rounds were capped at $51. Under the revised settlement, some customers could receive additional automatic payments of up to $149, bringing their total refund to as much as $200. 

Do you need to file a claim?

For the current expanded payment round, no action is required.

Amazon is sending eligible refunds automatically through PayPal, Venmo or mailed check. The FTC says customers do not need to submit a claim, respond to a notice or complete additional paperwork to qualify for these payments. 

Payments generally must be accepted within 60 days of issuance, so recipients should not ignore legitimate payment notices or checks. 

Watch out for scams

This is an important part of the story for local readers: the FTC is not contacting people directly about Amazon refunds.

The agency says neither the FTC nor Amazon will ask customers to pay a fee to receive settlement money. Anyone who receives a call, text or email demanding money in exchange for a refund should treat it as a likely scam. 

The FTC says Amazon is responsible for administering the payment process.

What East Tennessee customers should do

If you think you may qualify, the simplest approach is to monitor the email address and mailing address associated with your Amazon account and watch for a legitimate payment.

Customers who need help with a refund can use the contact information provided through the official Amazon settlement program. The FTC says eligible customers should receive any refund they are owed by April 2027. 

For East Tennessee households, the key takeaway is straightforward: millions more Prime customers are now eligible, payments are automatic, and refunds can total up to $200.