Amazon to Pay $2.5 Billion Over Prime Subscriptions

A worker unloads boxes from an Amazon delivery van in San Francisco.

Photographer: David Paul Morris/Bloomberg

Amazon.com Inc. agreed to pay $2.5 billion in penalties and refunds and change its process for how to cancel its Prime subscription to settle a lawsuit by the US Federal Trade Commission.

The company will pay $1 billion in civil penalties and will refund $1.5 billion to customers to resolve allegations that it misled millions of customers into signing up for Prime and then making it intentionally difficult to cancel, according to court records.