Amazon NASDAQ:AMZN stock is in focus on Tuesday after the company agreed to pay $2.25 million to resolve U.S. allegations that it failed to provide identity theft victims with records required under federal law, while its Australian business is also facing a separate legal challenge over Prime subscription terms.
The U.S. settlement follows a Federal Trade Commission investigation into claims that Amazon NASDAQ:AMZN did not consistently provide customers with information related to fraudulent purchases made in their names, as required by the Fair Credit Reporting Act. The agreement was disclosed in a court filing.
Separately, Australia's Australian Competition and Consumer Commission filed legal action against Amazon.com NASDAQ:AMZN, alleging the company's Prime Video subscription contracts contained unfair terms. The regulator said Amazon required more than one million annual Prime subscribers to either accept advertising or pay an additional AU$2.99 per month for an ad-free experience after introducing ads in July 2024, without offering refunds to customers who canceled.