Amazon Reaches $2.5 Billion Settlement Over Allegations It Misled Prime Users

Amazon has reached a $2.5 billion settlement with the Federal Trade Commission, just days into a civil trial examining whether the company duped customers into signing up for its signature Prime service and created a confusing process to cancel. The e-commerce giant will pay a $1 billion civil penalty, the largest in FTC history, and create a $1.5 billion fund to pay back to consumers, according to court documents. It will also be required on its Prime interface to include a simple way to cancel. Amazon agreed to settle the case without admitting or denying the FTC’s allegations that it misled customers in violation of federal consumer protection laws. The company said that the resolution allows it to move forward and focus on its business.