Amazon $200M settlement channels gambling app claims toward developers
Amazon and consumers have asked a federal judge to approve a $201 million settlement that directs claims against app developers rather than Amazon itself.Summary
Amazon and consumers have filed a motion in federal court seeking preliminary approval for a $201 million settlement in a class action lawsuit. The case alleges that Amazon violated Washington gambling laws and the state's Consumer Protection Act by processing payments for virtual casino chips sold in over 200 social casino apps on the Amazon Appstore. Amazon denies wrongdoing but is not opposing the settlement's procedural steps. The proposed agreement would establish a litigation trust to pursue 32 app developers for the funds, with Amazon transferring its indemnification rights against them. Class members would receive the same percentage of spending recovery achieved in previous developer settlements, which have totaled over $650 million. The settlement also mandates future changes for participating apps, including allowing players to continue after exhausting virtual chips without requiring another purchase, providing spending limits, and offering account suspension options. This case follows similar legal challenges facing Apple, Google, and Meta regarding gambling-style apps on their platforms.
(Source：Readwrite)