(NewsNation) — Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission over claims it duped millions of customers into signing up for Prime memberships and then made canceling a hassle.
The e-commerce giant will pay a $1 billion civil penalty and return $1.5 billion to consumers who were harmed by the company's deceptive enrollment practices, the FTC said Thursday.
"The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription," FTC Chair Andrew Ferguson said in a statement.
The $1.5 billion for consumers is the second-highest restitution award ever obtained by FTC action, according to the agency.
Here's what we know about