Amazon has agreed to pay $2.5 billion to settle a lawsuit alleging it misled customers into paying for Prime subscriptions, the Federal Trade Commission (FTC) announced Thursday.

The announcement came days into a trial between the tech giant and the FTC. Under the terms of the settlement, Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds to consumers, and cease any unlawful enrollment and cancellation practices for Prime.

The settlement figure is less than 1% of Amazon's revenue last year.

"Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel," said FTC Chairman Andrew N. Ferguson. "The evidence showed that Amaz

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