The company will be required to pay a $1 billion civil penalty and provide $1.5 billion in refunds back to an estimated 35 million consumers harmed by the company's "deceptive Prime enrollment practices," the FTC says.

The FTC complaint alleges Amazon "tricked and trapped" consumers into signing up for Prime, then making it too complicated to cancel their membership.

The Federal Trade Commission sued Amazon in U.S. District Court in Seattle two years ago and has alleged more than a decade of legal violations.

Amazon will pay $1.5 billion to affected customers.