Amazon Prime policy changes

A critical settlement has been reached in the lawsuit alleging deceptive practices related to Amazon Prime subscriptions. Amazon, accused of using confusing methods to steer consumers toward Prime service and, in particular, to cancel subscriptions, has withdrawn from the case. This settlement will cost the company $2.5 billion in total.

Amazon Prime service is changing

Amazon stated that its decision was influenced by its conviction for breaching consumers’ trust in another case. As part of the settlement, the global giant agreed to pay a $1 billion civil penalty and refund $1.5 billion directly to consumers.

The Federal Trade Commission noted that this settlement is the largest civil penalty ever paid in a lawsuit alleging violations of the rules. A total of 35 million users, reportedly victims of irregular Amazon Prime subscriptions, will receive $1.5 billion in refunds.

The settlement not only imposed a payment obligation but also required the termination of all transactions in question. Under the terms of the settlement, confusing subscription processes and difficult cancellation methods, known as “dark patterns,” will be removed from the platform.

Instead, Amazon will transition to a much simpler and clearer process. For example, during a purchase, users will be presented with a clearly visible “I Don’t Want Prime” button. Furthermore, during the subscription process, users will be presented with the clearest possible terms and conditions.

In an official statement, Amazon denied any criminal charges, but emphasized that the company aims to provide customers with clearer and more understandable Amazon Prime subscription and cancellation processes.