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Amazon customers are being handed £95 Amazon Prime refunds as the US online retail giant agrees to an eye-watering £1.1billion payout for US customers over sign-up failures.

Amazon is set to pay $2.5bn to settle a lawsuit over Prime "subscription traps". The US regulator said the company enrolled millions of customers into service without consent and made it difficult to cancel.

In a statement, the FTC said $1.5bn of the total will go into a fund to repay eligible subscribers, on top of a $1bn civil penalty. The Trump-appointed FTC chair, Andrew N Ferguson, hailed a “record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel” on Thursday.

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