Amazon Members May Be Eligible for Part of $2.5 Billion Settlement
Amazon Prime subscribers from the past six years might receive compensation after a significant legal settlement. The retail giant agreed to pay $2.5 billion following a lawsuit filed by the Federal Trade Commission (FTC).
Details of the Settlement
The FTC accused Amazon of making it excessively difficult for consumers to unsubscribe from Prime memberships. The company allegedly enrolled millions without clear consent and complicated the cancellation process.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC Chair Lina M. “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets.”
Penalties and Requirements
- Amazon must pay a $1 billion civil penalty.
- $1.5 billion will be refunded to customers affected by deceptive enrollment practices.
- The company is required to stop misleading enrollment and cancellation methods for Prime.
Who Can Claim
Current and former Amazon Prime members who were enrolled or affected by these practices may be entitled to a share of the settlement funds.
“As a result, the online retail giant is required to pay $1 billion civil penalty as well as an additional $1.5 billion in refunds to customers who were harmed by their deceptive Prime enrollment practices.”
Summary: Amazon faced a major lawsuit for unfair Prime subscription practices and agreed to a $2.5 billion settlement to compensate affected consumers and change its enrollment policies.