Amazon makes an announcement about e-book settlement pay-outs

Amazon makes an announcement about e-book settlement pay-outs

In this

Kindle Forum Announcement

Amazon gave more information on the e-book pay-outs from the settlements between publishers and most US states (Minnesota chose not to participate…they may be pursuing something separately).

This is not the Apple Agency Model court case: we’ll likely hear more about that one next week, but it’s not likely that one results in direct payments to customers (which this one does).

Amazon says in part that the amouts are :

“… estimated that it will range from $0.73 to $3.82 for every eligible Kindle book that was purchased. To be eligible, customers must have a U.S. billing address and must have purchased a Kindle book published by Hachette, HarperCollins, Simon & Schuster, Penguin or Macmillan between April 1, 2010 and May 21, 2012.”

This is higher than previously announced, because two more publishers had settled since the first estimates were made.

Random House isn’t part of this, because they didn’t join the Agency Model when everybody else did…they joined it later. The concern here is an alleged conspiracy, not the Agency Model iteslf. You can’t be a conspiracy by yourself. 🙂

You don’t need to do anything, and it isn’t quite all finalized yet (the next big date is December, 2013…and then there could be appeals, although since the publishers have already agreed to this, I think appeals are unlikely). The total pay-out is something like $165 million.

You can see more information here:

Customer FAQ for Attorneys General E-book Settlements

I also see a lot of people confused about this, and think that Amazon is being punished. The money is being sent to you by Amazon, but they didn’t do this…the publishers did, and appear to have forced the Agency Model on Amazon, according to that Apple trial. Think of it like your local store giving you a manufacturer’s rebate…the store gives you the money, but it comes from the manufacturer.

Update: thanks to reader jjhitt for letting me know I had a broken link…should be fixed now. I’m away from my normal resources, which is making things a bit more complicated.

This post by Bufo Calvin originally appeared in the I Love My Kindle blog.

7 Responses to “Amazon makes an announcement about e-book settlement pay-outs”

  1. jjhitt Says:

    The ‘a href’ link doesn’t point to amazon. It 404’s.

    • Bufo Calvin Says:

      Sorry…copying and pasting is the real challenge under current circumstances. That and multitasking…

      Update: thanks for writing, jjhitt!

      I got to a computer where I could fix it more efficiently…should be okay now.

  2. VondaZ Says:

    FYI – Regarding Minnesota, if you click the more info link (the one in the original announcement [the one you posted seems to be broken]), it explains the following about Minnesota’s settlement:

    (Under How much will my credit be? )

    The Attorneys General and Plaintiff Class estimate that the credit for Minnesota residents will range from $0.93 to $3.82.For more information, please visit

    Why are Minnesota residents treated differently?

    The Minnesota Attorney General did not participate in the lawsuits; claims on behalf of Minnesota residents were settled by a Plaintiff Class on different terms through separate negotiations. For more information, please visit

    If you go to that site to look up info about MN residents, it explains the following:

    Residents of Minnesota are included in the Macmillan, Penguin, and Minnesota-only Settlements. The State of Minnesota did not participate in the earlier settlements between the State Attorneys General and Hachette, HarperCollins and Simon & Schuster. Instead, class counsel represented Minnesota consumers and negotiated a settlement with these three publishers. This recent Minnesota-only settlement required payment of a higher percentage of damages than did the Prior Settlements. Minnesota residents will, therefore, receive a higher per-book payment than other consumers.

    I thought Minnesota residents might be interested to know this.

    • Bufo Calvin Says:

      Thanks for writing, VondaZ!

      I’ve fixed the borken link. I’m sure people will be happy to see the information you posted. 🙂

  3. Lady Galaxy Says:

    FYI I received an e-mail from Amazon today about this. It said the amount would be credited to my Amazon account and could be used for Kindle or Amazon store purchases. There was an option to receive a check. I think I’m going to opt for the check and then donate to my local public library to be used for the children’s library. I’m not sure exactly how many of the books I purchased will be eligible. I purchased 15 from the publishers listed that were above the original 9.99 price point. [While going back to check on the publishers of those books, it was interesting to see how prices have gone down due more to time than agency model I would assume. Some are now 50% less than when I purchased.] If the refund is too skimpy to buy a single book, I’ll add to it when I donate.

    • Bufo Calvin Says:

      Thanks for writing, Lady!

      I got that e-mail as well. Not sure exactly what I’ll get, either…it will be interesting to see.

      I think your plans are commendable!

  4. Round up #203: DoJ v. AGs, textbooks too much? | I Love My Kindle Says:

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