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The Gmail auto label trick doesn't seem to work anymore. Is there some setting somewhere to enable this feature?

I am referring to the trick where you specify a label in the email address. For example, if I give someone my email address as: email+Amazon@gmail.com

Gmail will automatically apply the label, "Amazon" to any incoming emails.

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That was never a feature of the sub-addressing (or plus-addressing).

Yes, the sub-addressing allows you to have email sent to your current email address with an additional word or phrase on the user part of the address. But applying labels would have been on your end of things.

What you would have done on incoming mail was have a filter already set up to apply a label to any emails specifically addressed to the variant with that seed word.

So if you had an email coming in to: example+amazon@gmail.com you would only get the label automatically applied if you had a filter triggered on the rule of:

To: example+amazon@gmail.com

Along with the action:

Apply the label: amazon

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