What the Tech: Amazon settlement
If you’re an Amazon Prime subscriber, you might be surprised to learn that you could be eligible for a portion of a massive $2.5 billion settlement. This comes after the Federal Trade Commission (FTC) found that Amazon made it unnecessarily difficult for users to cancel their Prime memberships, a practice often referred to as “dark patterns.”
Many of us have experienced the ease of signing up for Prime, especially during major sales events, with just a click. However, when it comes to canceling, the process becomes significantly more complex. The FTC’s ruling highlights that Amazon deceived people into subscribing and then kept them locked into memberships they no longer wanted.
So, who qualifies for a refund? If you enrolled in Amazon Prime between 2019 and June of this year and used Prime benefits fewer than three times in your first year, you’re likely eligible. This means if you didn’t place at least three orders for free shipping, didn’t watch Prime Video, listen to Amazon Music, or utilize any other Prime perks, you could be in line for a refund.
Additionally, if you attempted to cancel your Prime membership but couldn’t, you are also eligible.
To submit a claim, you’ll need to visit the FTC’s website. There, you’ll be asked to enter the email address associated with your Amazon account and provide simple proof of your enrollment or your attempts to cancel. If your claim is approved, eligible Prime members can expect to receive approximately $51 as an Amazon refund. The claims portal is expected to open soon.
Beyond the financial aspect, a crucial outcome of this settlement is that Amazon is now mandated to revise its sign-up and cancellation processes. This move aims to eliminate the “dark patterns” that have historically tricked consumers into maintaining their subscriptions.
This ruling isn’t just about Amazon; it sets a precedent for all companies, requiring them to make the cancellation process as straightforward as the subscription process.
The FTC estimates that around 35 million Prime customers could be eligible for these refunds, making it one of the largest consumer settlements in history.
