Amazon has agreed to a historic $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that it misled consumers into signing up for its Prime subscription service and made it difficult for them to cancel. The settlement, announced Thursday (September 25), concludes a two-year legal dispute between the e-commerce giant and the FTC.

The agreement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million customers affected by the deceptive practices. According to the FTC, this is the largest civil penalty ever imposed in a case involving an FTC rule violation and the second-highest restitution award obtained by the agency.

The lawsuit, filed in 2023, accused Amazon of using sophisticated subscription traps to enroll customers i

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