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Amazon to refund $3m to Prime users over six-step cancellation process

By · Via Times of India · Published by Everything Blog

In short

The action originated from a 2024 consumer fraud lawsuit led by Arizona Attorney General Kris Mayes targeting a six-step cancellation process that obstructed customers seeking to end their memberships. The state argued the mechanism directly contradicted the retailer's claims that subscriptions could be terminated at any time. Under the resulting settlement, the company will deliver customer refunds through the state attorney general's office alongside millions in additional payments, including $1 million allocated to state-selected food charities.

Key points

  • State authorities can pursue independent restitution actions even when major federal regu…: State authorities can pursue independent restitution actions even when major federal regulatory settlements have already taken place.
  • Retailers face serious financial liabilities when complex digital cancellation flows cont…: Retailers face serious financial liabilities when complex digital cancellation flows contradict their advertised easy-cancellation promises.
  • Amazon resolved the consumer fraud claims through substantial financial penalties while m…: Amazon resolved the consumer fraud claims through substantial financial penalties while maintaining that it did not violate state law.

Sources checked by our analysis pipeline: 1

Amazon has agreed to pay $3 million to eligible customers in Arizona following allegations that it made cancelling its Prime memberships unnecessarily difficult. The settlement comes after Arizona Attorney General Kris Mayes accused the retail giant of using a complicated cancellation system that allegedly prevented customers from easily ending subscriptions they no longer wanted.

According to a report by the Arizona Daily Star, the agreement requires Amazon to provide $3 million to the Attorney General's Office for distribution among eligible consumers. The company will also pay $1.5 million towards a fund used to investigate consumer fraud and educate residents about protecting themselves, along with another $1.5 million to cover the state's legal expenses.

Additionally, Amazon has agreed to donate $1 million to charitable organisations selected by Mayes, all of which work towards providing food to people in need.

Amazon Prime customers allegedly faced six steps to cancel memberships

The lawsuit, filed by Mayes in 2024 under Arizona's consumer fraud laws, focused on Amazon's online Prime membership cancellation process. The state alleged that customers had to navigate at least six separate…

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