Amazon has reached a historic $2.5bn (£1.9bn) settlement with a US business watchdog over allegations it tricked customers into signing up for Prime membership.

The Federal Trade Commission (FTC) accused the online giant of tricking customers into the membership scheme - which includes perks like faster delivery - and then making it difficult to cancel.

The Seattle-based company will pay $1bn (£750m) in civil penalties, and $1.5bn (£1.1bn) paid back to customers unintentionally enrolled in Prime or deterred from cancelling their subscriptions.

Around 35 million Prime customers will be eligible for a payout from the $1.5bn (£1.1bn) fund, the FTC said.

Customers who signed up for Prime between 23 June, 2019, and 23 June, 2025, through certain offers, and used few Prime benefits afterward

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