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

Amazon has reached a $2.5 billion settlement with the US Federal Trade Commission following allegations that it used deceptive methods to enroll customers into its Prime subscription service and made cancellation difficult. The agreement, reached during the early days of a federal jury trial, includes a $1 billion civil penalty and a $1.5 billion fund to reimburse approximately 35 million impacted consumers.

Under the settlement, Amazon is prohibited from misrepresenting Prime's terms and must obtain explicit consent before charging for subscriptions. The case also named two Amazon executives, who are now barred from unlawful conduct related to subscriptions. The settlement is one of the largest consumer protection penalties imposed by the FTC and ends a high-profile legal battle for the company.

Amazon reaches $2.5B settlement over 'deceptive' Prime program

In just the past few minutes, some breaking news on Amazon. Let's get to Mackenzie Segalos, Mack. Hey, so just three days into his 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 civil case brought in 2023 also named three executives and carry 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 in 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. What I will say, this settlement removes yet another regulatory overhang for big tech. Guys? Mac, a couple of points. Let's take them one by one. One is whether or not this is a heavy regulatory hand from an administration that prides itself on taking a light touch. And then the other question I have would be about other companies in the subscription business and whether this provides some kind of precedent for their, their practices. Right. So on that first point, I mean, to put that two and a half billion dollar fine into context, that's 0.1% of Amazon's $2.4 trillion market market cap. We're seeing the stock rise slightly. So from the investor perspective, they are moving forward. They no longer have to deal with a jury trial. They were in the early days just doing jury selection on Monday. And Prime is a really key program for Amazon. Keep in mind, this has been around since 2005. It has over 200 million members worldwide, generates billions each year. So they wanted to draw a line under this case and move forward with respect to others who might be impacted by, you know, subscription services here. That's the question that I'm going out to sources on right now, Carl. Yeah. And remind us here, put us in the, in the, the chair of a would be consumer who was interested in Prime, the ally or the, the, the settlement here regards a practice that what, what, what in essence did Amazon get wrong in that, in that situation? It was auto enrollment. That's the key issue. So the fact that consumers did not have to grant their explicit permission before being charged that annual fee. And then consumers also said that it was difficult to cancel and get reimbursed. That is a big part of how terms going forward will be amended. Amazon will have to one, get that explicit permission from them. And two, I mean, they're being really held to account here. So it's a very visible, you know, apology essentially that's embedded into this settlement. Fascinating. And you're right about the price action. There might be a view that at least it's done. It could have been worse on a day where the tapes, not especially constructive, but Kenzie Segalos on Amazon.

The widow of one of the 60 passengers aboard the American Airlines regional jet involved in the deadly midair collision near D.C. in January has filed a wrongful death lawsuit against American Airlines, the FAA and the U.S. Army.

Washington

D.C. midair collision victim's family sues airline, FAA and Army

Former French president Nicolas Sarkozy was found not guilty of receiving illegal campaign financing from late Libyan dictator Muammar Gaddafi for his successful 2007 presidential bid, but was pronounced guilty of criminal conspiracy in the same case.

Paris

France ex-President Sarkozy convicted of criminal conspiracy

China led several countries in announcing new climate plans on Wednesday and offered a veiled rebuke of the U.S. president's anti-climate rhetoric a day earlier at the U.N. General Assembly.

Beijing

China sets new emissions goals after Trump rejects climate change

World leaders have launched an initiative, “Democracy Now,” on the sidelines of the UNGA to counter far-right extremism and defend multilateralism. As the UN faces skepticism, a new initiative by Brazil, Spain, Chile, Uruguay, and Colombia is gaining support among member states.

New York

Leaders at the U.N. push reforms to counter authoritarian rise

U.S. Secretary of State Marco Rubio met Russian Foreign Minister Sergei Lavrov on the sidelines of the U.N. General Assembly. The meeting came a day after President Trump appeared to soften his language on the Ukraine war, raising questions about U.S. policy direction.

Manhattan

Ukraine Invasion

Rubio meets Russia's Lavrov after Trump shifts tone on Ukraine war

The family of one of the 67 people killed earlier this year when an American Airlines plane and a  U.S. Army helicopter collided over Washington, D.C., filed a lawsuit against the government and the airline.

Widow of D.C. plane crash victim sues American Airlines, federal gov.

The new Paramount+ documentary "Bodyguard of Lies" highlights the efforts across four presidential administrations to conceal the challenges the U.S. faced during the Afghanistan

New documentary uncovers gov. deception during Afghanistan War

In his address to the U.N. General Assembly, Ukrainian President Volodymyr Zelenskyy warned that Russia wants to expand the war beyond Ukraine.

Putin wants to expand war beyond Ukraine, Zelenskyy warns U.N.

The Trump administration is rehiring hundreds of federal employees who were laid off during cuts made by the Department of Government Efficiency, or DOGE. CBS News' Olivia Rinaldi has more details.

Trump administration rehires hundreds laid off during DOGE cuts

Former French President Nicolas Sarkozy faces up to 10 years in prison if a Paris court convicts him of secretly using funds from the Libyan government of late dictator Moammar Gadhafi to finance his presidential campaign in 2007.

Ex-French President Sarkozy awaits verdict in trial

An international aid flotilla trying to deliver aid to Gaza said on Wednesday (September 24) it was attacked overnight by drones in international waters off Greece, prompting Italy to send a navy ship to come to its assistance.

Middle East Conflict

Italy sends navy ship to help Gaza aid flotilla after drone attack

At least three people were shot at a Dallas Immigration and Customs Enforcement facility on Wednesday morning, officials said. One victim was killed, while two others are injured. The shooter died of a self-inflicted gunshot wound.

Dallas

Three people shot at ICE facility in Dallas, officials say

The U.S. has long argued China should give up the developing-country status because it is the world’s second-largest economy.

China gives up WTO developing-country status as tariff tensions linger

U.S. President Donald Trump reversed his stance on the Ukraine war after meeting President Volodymyr Zelensky at the UN General Assembly, now expressing confidence that Ukraine can reclaim all its territory.

Trump reverses stance on Ukraine after meeting with Zelenskyy

After a six-day suspension, late-night host Jimmy Kimmel broke down in tears during his return to TV with a monologue focused on the importance of the maintaining the right to free speech while still poking fun at the Trump administration.

Los Angeles

Jimmy Kimmel makes emotional return with monologue about free speech

Typhoon Ragasa, the world's most powerful tropical cyclone this year, struck the southern Chinese city of Yangjiang on Wednesday after lashing Taiwan and Hong Kong with ferocious winds and heavy rains.

Yangjiang

Typhoon Ragasa lashes Hong Kong, Taiwan, southern China

Mainland China is bracing for Super Typhoon Ragasa, after the powerful storm caused widespread destruction across the region. In Taiwan, at least 14 people have died in flooding triggered by the cyclone.

Kowloon

Typhoon Ragasa sweeping towards China, 14 killed in Taiwan

A jury has convicted Ryan Routh of attempting to assassinate U.S. President Donald Trump on his Florida golf course last year. He was found guilty of all five charges, which included attempted assassination of a major presidential candidate and assaulting a federal officer.

West Palm Beach

Ryan Routh found guilty of trying to assassinate Trump

U.S. President Donald Trump on Tuesday (September 23) spoke with reporters while meeting with Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in New York City.

Trump takes questions during meeting with Zelenskyy

Chipmaker Nvidia said it would invest up to $100 billion in OpenAI, the developer of ChatGPT, as part of a strategic partnership. CBS MoneyWatch correspondent Kelly O'Grady has more details.

Santa Clara

Rise of AI

Nvidia to invest up to $100 billion in OpenAI

For the first time in more than half a century, astronauts will soon be heading back to the moon. CBC's Nicole Mortillaro breaks down the preparations for the mission, Artemis II, which will send astronauts on a historic loop around the moon.

Houston

NASA prepares to send astronauts around the moon

U.S. President Donald Trump addressed the United Nations General Assembly in New York City, where he pushed back on countries that have formally recognized a Palestinian state. Trump also touted U.S. immigration policy.

Trump delivers address at U.N. General Assembly

Southern China and Hong Kong are bracing for Super Typhoon Ragasa as authorities evacuate hundreds of thousands of people. CBS News' Anna Coren has more details.

Hong Kong Island

Super Typhoon Ragasa targets Southern China, Hong Kong

Russian President Vladimir Putin offered to voluntarily maintain the limits on deployed strategic nuclear weapons set in the 2010 New START accord after it expires in February if the U.S. agreed to do the same.

Moscow

Putin offers Trump one-year extension to nuclear weapons treaty

President Trump announced Monday the FDA believes pregnant women should not take acetaminophen, the active ingredient in Tylenol, claiming there could be a link between the medication and autism, despite objections from medical experts.

Trump, FDA tell pregnant women not to take Tylenol

ABC announced Monday that "Jimmy Kimmel Live!" will return to the air Tuesday night (September 23). The network pulled the show last week following a remark from Kimmel about the death of Charlie Kirk.

Jimmy Kimmel returning to air

As leaders from around the globe come together at the United Nations General Assembly in New York this week, conflicts in Gaza and Ukraine continue to rage.

World leaders come together at UNGA as global tensions rise

Monday marks the second day of strike action after a similar walk-off was called on Sunday by the southern European country's largest trade union, the Italian Confederation of Labour (CGIL).

Rome

Thousands strike across Italy in solidarity with Palestinians in Gaza

The Trump administration is adding $100,000 to the existing fee for H-1B visa applications, taking aim at a program that is used to attract highly skilled workers to the U.S.

Trump administration to add $100,000 fee for H-1B visas

President Donald Trump urged Attorney General Pam Bondi in a social media post to move forward with cases against several people connected to the U.S. government. CBS News justice correspondent Scott MacFarlane has more.

Breakdown