Amazon Class Action Lawsuit Prime
One of the most well known and most profitable lawsuits that Amazon has gone through is Amazon Class Action Lawsuit Prime. It involves an affiliate program that pays a small commission for every member who buys something. The company claims that there are many Class Action plaintiffs that have been paid millions by Amazon. There have been quite a number of such cases that have been won by Amazon.
The reason why Amazon is so successful at such lawsuits is because it is very easy to file and it gets the attention of everyone. Class Action suits allow groups of people to band together to pursue a common goal. The lawsuit Amazon filed against ClickBank was one such case. There were so many people signing up to sell products on ClickBank that the retailer had trouble keeping up with the demand. A settlement was eventually reached and Amazon got its money without any risk.
Such settlements are usually much larger than the actual amount of loss incurred. Sometimes the company compensates the lead plaintiff while buying out their class action suit. This means that the plaintiff’s class then gets a much larger share of the settlement money. The reason why Amazon uses such a method is that they do not want to be saddled with a bunch of cases that have no real chance of winning. There are some Class Action lawsuits that Amazon can still win if the plaintiffs can show that the defendant knew about the problem prior to settling with them.
Amazon has been able to avoid such issues by being extremely proactive in their settlement policies. They have a Fraudulent Claims Program that allows them to reject payments to people who do not meet their requirements. If someone does enter the program and they do not settle with Amazon within a certain time, they will be strongly sanctioned. They are also required to provide proof that they got into the program and that they actually lost money as a result.
In the case of Amazon, they did not have to go through this kind of rigorous process. Their policy is so simple and clear that if you want to put up a case, you simply need to contact them. If your case is accepted, you will be paid according to a schedule. If you lose, you will get your money back as quickly as possible.
While it may seem a bit strange that the largest company in the world would be in a Class Action lawsuit, Amazon certainly did nothing wrong. They simply followed the rules and settled their own case. They could have sued Clickbank and demanded compensation for the wrongs done to them. Instead, they chose to make good on their promise to settle and go after only the legitimate cases.