Amazon got a sever alligation that E-Commerce giants are using deceptive methods to enroll millions of consumers into its Prime Subscription and intentionally made it difficult to cancel subscription.In the FTC this is the largest victory for Consumer Protection and Federal Regulators.
The Total settlement include a $1.5 Billion Refund for Prime Subscriber and $1 Billion in Civil Penality and Amazon have to implement a clearer subscription terms and cancellation Policy.
Who will get a refund?
Around 35 million Amazon Customers may get refund from this settlement. You are eligible for a refund of 51$ if:
. You signed up Amazon Prime by mistake because of ‘Single Page Checkout’ or other confusing prompts.
. This happened between 23 June, 2019 and 23 June, 2025.
Some people will get money back within 90 days automatically. Others may need to submit a claimAmazon will contact everyone who is eligible and give clear steps on how to claim the refund.
FTC(Federal Trade Commission) Chairman Andrew N. Ferguson said that Amazon used tricky tactics to push people into signing up for Prime and made it very difficult to cancel. He added that this settlement will put billions of dollars back into customers pocket and ensure Amazon can’t use these tactics again.
IN reply of FTC an Amazon spokesperson said the company has always followed the law and choose to settle so it can focus on innovation for customers. They also claimed that signing up for and canceling Prime has always been clear and simple.
