Amazon Settles Prime Membership Dispute With $2.5 Billion

Settlement Information

Amazon settled for $2.5 billion (approximately ₹22,000 crores) in a matter involving Prime Membership. Consumers complained that it was tricky to cancel Prime Membership upon subscribing. The U.S. Federal Trade Commission (FTC) looked into the complaints and proposed remedies. In compliance with the settlement, $1 billion will be used to compensate users who inadvertently subscribed to Prime and then found it hard to cancel.

Refund Timeline

Refunds will be made in 90 days following the settlement order. The Director of FTC's Bureau of Consumer Protection, Chris Mufariz, stated that the investigation took two years. Complaints alleged that Amazon intentionally structured its website so that customers were steered towards Prime membership, which it was difficult to buy without being a Prime member.

Reason for Settlement

As per Mufariz, Amazon preferred settlement over prolonged legal appeals to settle the matter sooner. The deal necessitates that Amazon make customers clearly aware of Prime and ancillary services.

Amazon's Statement

Amazon's spokesperson Mark Blufkin stated that the company has denied doing anything wrong. He stated that the settlement was made to put behind the dispute and concentrate on improving customer service. He further stated that Amazon is still working towards simplifying Prime enrollment and cancellation.