In just the past few minutes, some breaking news on Amazon.

Let's get to McKenzie Segalos.

Mack.

Hey, so just three days into its jury trial in a Seattle federal court,

Amazon has reached a $2.5 billion settlement with the Federal Trade Commission

over claims that it used deceptive tactics to push customers into its $139 a year prime program.

Now, regulators saying Amazon tricked and trapped millions into subscriptions

and then made cancellation confusing and difficult. FTC chairman Andrew Ferguson is calling this

penalty a monumental win for the agency under the Trump administration. Now, as part of the

settlement, Amazon will pay a $1 billion civil penalty to the FTC.

They will also be creating a $1.5 billion consumer fund to reimburse the 35 million

customers who were impacted.

The agreement prohibiting Amazon from misrepresenting the terms of prime going forward,

and they'll now have to get consumers express consent before charging them for a subscription.

This simple case brought in 2023, also named three executives, and carried the possibility of hundreds of millions in damages, plus fines of more than $50,000 per violation.

The agreement says that Amazon and two of its executives, Prime boss,

Jamil Ghani, and Neil Lindsay, an SVP, and their health division who previously held a role in

the prime business, they will be prohibited from unlawful conduct. Now, this settlement ends one of the

highest profile consumer protection fights in years. It is one of the FTC's largest penalties yet.

Meta, remember, had to pay a $5 billion fine in 2019 over privacy lapses.

Now, we are out to Amazon, haven't heard back from them yet.

Those shares slightly higher, but relatively flat on the announcement.

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