Amazon's $2.5 Billion FTC Settlement: A Milestone in Consumer Protection

Amazon has agreed to a record $2.5 billion settlement with the Federal Trade Commission after being accused of misleading customers into Prime memberships. The deal includes $1 billion in penalties and $1.5 billion for affected consumers. Despite the settlement, Amazon denies any wrongdoing.

Amazon has made headlines by agreeing to a monumental settlement with the Federal Trade Commission. The tech giant will pay a total of $2.5 billion, culminating a case that accused it of deceptively enrolling customers in its Prime membership service.

Of the settlement, $1 billion will serve as a civil penalty, marking the largest fine ever imposed by the FTC. An additional $1.5 billion will be distributed to consumers who were either unknowingly enrolled or found it difficult to cancel their Prime memberships.

Despite the hefty payout, Amazon has not admitted to any wrongdoing. Requests for comments from The Associated Press went unanswered following the settlement announcement.

(With inputs from agencies.)