Amazon has made it easy to sign up for one Privileged subscription-but extremely difficult to undo. From complicated shipping options to Prime Video, many customers have had a subscription they didn’t want, and now Amazon is paying the price. In September, the U. Federal Trade Commission dropped a massive $2.5 billion settlement against the company for its deceptive underwriting tactics.
This isn’t just a slap on the wrist. The whopping $1.5 billion is earmarked for refunds to eligible subscribers, while the remainder serves as civil penalties. Amazon is now legally required to provide a clear and obvious option to cancel Prime, making it as easy to unsubscribe from the service as it is to join.
Amazon will not tolerate any shady behavior. “Amazon and our leaders have always followed the law, and this agreement makes possible us to move forward and focus on innovation for customers, ” said Mark Blafkin, senior director at Amazon. said in a statement. “We’re working hard to make it clear and simple for customers to sign up or cancel their Prime membership and to deliver substantial value to our millions of loyal Prime members around the world. ”
Why did the FTC file a lawsuit against Amazon?
The FTC filed suit against Amazon, accusing the company of using “dark patterns” to trick people into subscribing to Prime, making it highly difficult to cancel. The FTC argued that Amazon violated Section 5 of the FTC Act Online Shopper Confidence Restore Act.
“Specifically, Amazon used manipulative, coercive, or deceptive user interface designs, known as ‘dark patterns, ‘ to trick consumers into signing up for auto-renewing Prime subscriptions, ” the report said. FTC complaint declared.
Who is eligible for Amazon payment?
Amazon’s legal agreement is limited to customers who signed up for Amazon Prime between June 23, 2019 and June 23, 2025. The agreement is moreover limited to customers who signed up for Prime through a “contested sign-up flow” or signed up for Prime in any way but were unable to cancel their subscription.
The FTC highlighted specific sign-up pages, including the Prime Video sign-up page, the Universal Prime Decision page, the shipping options selection page, and the one-page checkout page. In addition, to qualify for a payment, applicants must have used a maximum of ten Amazon Prime benefits in a twelve-month period.
Customers who signed up through these controversial processes and used no more than three Prime benefits in a year will be automatically paid by Amazon within 90 days. Other eligible Amazon customers need this file a complaintafter December 23, and Amazon is required to send notifications to these individuals within 30 days of their automatic payments.
Customers who have not used a disputed registration process but have not been able to cancel their membership must furthermore submit a payment request.
How much will Amazon payments be?
Payments to eligible Amazon Prime claimants are limited to a maximum of $51. This amount may be reduced depending on the number of Amazon Prime benefits you used when you subscribed to the service. These benefits include free two-day shipping and preview reveals or movies on Prime Video or discounts on Whole Foods groceries.
Customers eligible for payments must receive them by December 24. Customers outside the United States are not eligible for payment.
