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MIAMI – Amazon has decided to settle a lawsuit filed by the Federal Trade Commission (FTC) over allegations of duping customers for its Prime subscription service and refusing to let them out of the plan.

The $2.5 billion historic settlement brings to a close a two-year legal battle following growing customers’ complaints of being misled when they signed up for the service.

The agreement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million customers affected by the deceptive practices.

According to the FTC, this is the largest civil penalty ever imposed in a case involving an FTC rule violation and the second-highest restitution award obtained by the agency.

As part of the settlement, Amazon is required to provide clear disclosures about Prime’s terms during enrollment and offer easy cancellation options.

The company must also obtain express consent from customers before charging them for a subscription.