Amazon Forced to Boost Refunds to $200 for Millions of Customers
The Federal Trade Commission (FTC) has ordered Amazon to accelerate and expand payments to consumers affected by its deceptive enrollment practices in Prime subscriptions. As part of a $2.5 billion settlement reached last year, Amazon was required to pay up to $1.5 billion to eligible consumers and an additional $1 billion civil penalty.
Since the settlement, Amazon has issued over $845 million in refunds to consumers, but with the revised order, millions more shoppers will now qualify for payments. The maximum payment cap is increasing from $51 to $200 total, and all future payments will be handed out automatically, eliminating the need for consumers to submit claims or paperwork.
Under the original settlement, Amazon was only required to provide up to $51 to those who used fewer than 10 Prime benefits during a one-year period. However, with the revised order, consumers who have used between 11 and 20 Prime benefits will also be eligible for automatic payments.