Amazon will pay a $2.5 billion settlement to the FTC to resolve allegations of deceiving customers into Prime memberships. The settlement, reached just days before trial, includes a $1 billion civil penalty and $1.5 billion in customer refunds for approximately 35 million affected individuals. The agreement prohibits Amazon from misrepresenting Prime terms, mandates clear enrollment disclosures and easy cancellation, and restricts certain executives from unlawful conduct. This is one of the FTC's largest ever penalties.

Prepared by Christopher Adams and reviewed by editorial team.