Amazon will pay $2.5 billion to settle claims about deceptive Prime practices

Core Points - Amazon is facing a record fine of $2.5 billion to settle claims of misleading customers regarding Prime subscriptions [1][2] - The Federal Trade Commission (FTC) stated that $1.5 billion of the fine will be allocated for customer refunds [1] - The settlement was announced just as Amazon's trial was about to commence [2] FTC's Statement - FTC Chairman Andrew N. Ferguson emphasized the significance of the settlement as a victory for consumers against deceptive subscription practices [2] - The FTC accused Amazon of employing sophisticated tactics to manipulate consumers into subscribing to Prime and complicating the cancellation process [2] - The settlement aims to ensure that Amazon does not engage in similar practices in the future [2]