AWS lambda api gateway error "Malformed Lambda proxy response"

I am trying to set up a hello world example with AWS lambda and serving it through api gateway. I clicked the "Create a Lambda Function", which set up the api gatway and selected the Blank Function option. I added the lambda function found on AWS gateway getting started guide:

exports.handler = function(event, context, callback) {
  callback(null, {"Hello":"World"});  // SUCCESS with message
};

The issue is that when I make a GET request to it, it's returning back a 502 response { "message": "Internal server error" }. And the logs say "Execution failed due to configuration error: Malformed Lambda proxy response".

via jjbskir