Over the past years, Amazon has been embroiled in a lawsuit that alleged that the company violated Washington state’s gambling laws and the state’s Consumer Protection Act by facilitating transactions for social casino apps offered through the Amazon Appstore. However, the company has now agreed to a settlement that would allow consumers to pursue more than $200 million in damages.
Amazon Agreed to a Settlement
The proposed settlement, which was filed on Thursday in the federal court in Seattle and still requires a judge’s approval, does not require Amazon to pay into a settlement fund. However, the company agreed to a $201 million judgment against it and to transfer its rights to seek reimbursement from the social casino app developers to the class. In return, class members agreed not to collect the judgment from Amazon.
However, even this settlement took quite a long time to be developed and agreed upon. Talk about it first appeared almost a year ago, as Amazon denied any wrongdoing on its part.
Amazon welcomed the settlement, saying it would allow the company to continue offering choice in its Appstore while requiring developers to make changes that improve the customer experience. The company added that apps available through its Appstore must comply with applicable laws. Amazon further reiterated that it has the right to remove any app at any time.
Before the settlement, Amazon tried many other tactics to soften the impact of the lawsuit. For example, the company proposed to limit the discoverability of social casino apps during the investigation. However, that notion was denied by the judge, who also required Amazon to turn over more evidence.
What Is the Plaintiff’s Viepoint?
In court documents, the plaintiffs’ attorneys described the settlement as the latest chapter in their campaign against the social casino industry. They noted that earlier settlements with app developers had returned more than $650 million to consumers in Washington and across the country. The attorneys said the settlement positions the class to recover a significant portion of its total losses, consistent with the settlements previously reached with social casino developers.
Meanwhile, according to the plaintiff, the proposed $201 million covenant judgment against Amazon represents 30% of class members’ spending on the apps. The plaintiff said the figure was calculated using transaction data Amazon produced during the litigation, reflecting in-app purchases made by class members. Any funds recovered from the developers would be distributed to class members.