Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that it duped users into paying for Prime memberships, the regulatory agency announced Thursday.

The surprise settlement comes as Amazon and the FTC were just three days into the trial in a Seattle federal court. Opening arguments took place Tuesday.

The lawsuit, filed by the FTC in June 2023 under the Biden administration, claimed that Amazon deceived tens of millions of customers into signing up for its Prime subscription program and sabotaged their attempts to cancel it.

The FTC said the agreement prohibits Amazon from misrepresenting the terms of Prime, requires the company to make clear and conspicuous disclosures about the terms of the program during enrollment, and it requires Amazon to get consumers’ express consent before charging them for a subscription. Amazon must also provide an easy way for users to cancel their subscription, the agency added.

Launched in 2005, Amazon’s Prime program has grown to become one of the most popular subscription services in the world, with more than 200 million members globally, and it has generated billions of dollars for the company. Membership costs $139 a year and includes perks like free shipping and access to streaming content. Data has shown that Prime members spend more and shop more often than non-Prime members.

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