Amazon reaches $2.5 billion settlement over Prime enrolment case

Amazon.com Inc agreed Thursday to pay $2.5 billion to settle allegations from a US regulator that it used deceptive practices to enrol consumers in Amazon Prime and made it difficult to cancel subscriptions.

The Federal Trade Commission's lawsuit, filed in federal court in Seattle, alleged that Amazon knowingly used designs known as "dark patterns" to trick consumers into signing up for the USD139-per-year Prime service during checkouts.

The settlement requires court approval. If approved, it would represent one of the FTC's largest financial recoveries in a consumer protection case.