Amazon will pay $2.5 billion to settle an FTC lawsuit alleging deceptive Prime enrollment practices. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million consumers. The FTC accused Amazon of creating confusing interfaces to enroll users in Prime without their knowledge and making cancellations difficult. As part of the settlement, Amazon must improve Prime signup and cancellation processes, including a clear "decline" button and simplified cancellation procedures. This marks one of the FTC's largest settlements ever.

Prepared by Christopher Adams and reviewed by editorial team.