Amazon to pay $3 million to Arizona Prime customers in settlement
The retail giant will also donate $1 million to charities and provide $1.5 million for consumer protection and legal costs.
Amazon has agreed to a $3 million settlement to compensate eligible Prime members in Arizona after the state alleged the company made cancelling subscriptions difficult, according to the Times of India.
Arizona Attorney General Kris Mayes accused the company of using a six-step process to prevent users from easily ending memberships. The state claimed this system helped Amazon reduce cancellations by 14 per cent at one point.
Under the agreement, the $3 million will be distributed to consumers by the Attorney General's Office. Amazon will also pay $1.5 million for a fund to investigate consumer fraud and educate residents, plus $1.5 million for state legal expenses.
The company has also agreed to donate $1 million to charitable organisations selected by Mayes that provide food to people in need. Mayes stated that Arizonans should be able to cancel subscriptions as easily as they sign up.
Amazon has denied any violation of Arizona law and does not admit wrongdoing under the consent judgment. State attorneys have agreed not to claim the company's business practices are illegal.
The company is still contesting a separate lawsuit filed by Mayes regarding how product listings and the 'Buy Box' feature are displayed on its website.