Broader Scrutiny of Consumer Practices
The lawsuit targeted Amazon’s heavily marketed “hassle-free” return process — a system designed to reassure shoppers but, according to plaintiffs, sometimes left them empty-handed or unexpectedly billed.
The case also fits into a broader pattern of regulatory and legal scrutiny of Amazon’s consumer-facing operations. In September, the company agreed to a $2.5 billion settlement with the FTC after allegations that it misled consumers into enrolling in Prime subscriptions and made cancellations difficult. That agreement came after trial proceedings had already begun.
Just two days after reaching the class action settlement, Amazon confirmed on Jan. 28 that it had cut approximately 16,000 jobs worldwide. The workforce reduction comes as the technology and cloud computing giant seeks to streamline bureaucracy and boost efficiency, particularly as it ramps up investment and prioritization in artificial intelligence.
