Eish! Amazon is set to cough up a whopping $2.5 billion (around R46 billion, give or take depending on the rand!) to settle claims from the US government. Apparently, they allegedly tricked millions of folks into signing up for Amazon Prime and then made cancelling harder than finding parking in Jozi on a Friday afternoon.
What's the Story?
The US Federal Trade Commission (FTC) is saying Amazon used sneaky tactics, like pop-ups during checkout, to get people to subscribe to Prime. They also allegedly didn't make it clear that those one-month free trials would automatically turn into paid memberships. Ai tog!
The Settlement
Out of that massive settlement, $1.5 billion is earmarked for refunds for customers who were, let's just say, 'persuaded' into signing up. The FTC is chuffed with this win, calling it their biggest civil penalty ever. Amazon, for their part, is playing it cool, saying they've "always followed the law" and this settlement lets them move on.
What is Amazon Prime Anyway?
For those who don't know, Amazon Prime offers perks like free shipping and access to streaming movies. Millions of people worldwide are members, paying a yearly fee for the privilege. In the US, it costs $139 a year, or $14.99 a month. In the UK, it's £95 a year.
Are You Affected?
If you were signed up for Amazon Prime between June 2019 and June 2025, and you felt like you were tricked into it, you might be eligible for a refund. Keep an eye out for more details from the FTC.
So, South Africans, while this drama is unfolding overseas, it's a good reminder to always read the fine print and be careful about those automatic subscription renewals! Don't let anyone trick you into spending your hard-earned rands!