More Amazon Prime customers will receive automatic settlement payments after a revised agreement increased eligibility and raised the maximum payout to $200. The change follows a $2.5 billion settlement linked to allegations that Amazon misled consumers during Prime enrollment and cancellation processes.
The updated order expands the group of customers eligible for payments and removes the need for future recipients to complete additional paperwork. Payments for newly included customers are scheduled to begin on October 1.
Revised Settlement Expands the Number of Eligible Prime Customers
According to The U.S. Sun, the original settlement covered customers who used fewer than 10 Prime benefits during a one-year period. The revised agreement now includes customers who used between 11 and 20 Prime benefits during the same timeframe.
The payment cap has also increased from the previous maximum of $51 to $200. Customers who already received an earlier payment may receive additional funds under the updated terms.
The changes come after the Federal Trade Commission (FTC) revised its order with Amazon, expanding the number of consumers covered by the agreement.
FTC Says Updated Order Will Return More Money to Consumers
The FTC said the revised settlement will allow more customers affected by Amazon’s Prime enrollment and cancellation practices to benefit from the agreement.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said: “The revised order will ensure more consumers who were harmed by Amazon’s deceptive enrollment and cancellation practices benefit from the FTC’s historic settlement.”
He added: “This action underscores the FTC’s commitment to ensuring companies return money to consumers harmed by unlawful and deceptive business practices.”
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Automatic Payments Will Replace Additional Claims Process
Future payments under the expanded agreement will be distributed automatically to eligible class members. The settlement process does not require those consumers to submit new forms or complete another enrollment step.
The agreement also includes a payment threshold requirement. If Amazon does not deliver the required number of payments by February, the company may have to provide an additional payment of up to $149 to customers who already received compensation.
Class Action Settlement Covers Groups of Affected Consumers
A class action settlement allows a group of consumers with similar claims to resolve a legal dispute together. People included in the class typically receive compensation while giving up the ability to bring separate claims over the same issue.
Companies that settle these cases often deny wrongdoing while agreeing to payments to resolve litigation costs and provide compensation to affected consumers.
The additional round of Amazon Prime settlement payments is scheduled to begin in April, while the newly expanded automatic payments start on October 1.
