Penalty Amount
$1,000,000,000
Consumers Affected
35,000,000
The FTC secured a $2.5 billion settlement with Amazon, including a $1 billion civil penalty and $1.5 billion in consumer refunds, for enrolling millions of consumers in Prime subscriptions without proper consent and designing a deliberately difficult cancellation process. The order requires Amazon to implement clear enrollment disclosures, an easy cancellation method, and cease the unlawful practices.
Amazon must pay a $1 billion civil penalty and provide $1.5 billion in refunds to approximately 35 million affected consumers. The company is permanently enjoined from using deceptive Prime enrollment and cancellation practices. Specific requirements include providing a clear button to decline Prime, disclosing all material terms (cost, billing frequency, auto-renewal, cancellation), creating an easy cancellation process using the same method as sign-up, and paying for an independent third-party supervisor to monitor the consumer redress distribution.
Entity
Amazon.com, Inc.
Also known as: Amazon
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon
Amazon ROSCA Order Filed 0
https://www.ftc.gov/system/files/ftc_gov/pdf/Amazon-ROSCA-Order-Filed_0.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
$25.0M
The FTC and DOJ charged Amazon with violating COPPA by indefinitely retaining children's Alexa voice recordings and failing to honor parents' deletion requests. Under a proposed consent decree, Amazon must pay $25 million, delete children's data, and implement privacy safeguards.
$18.0M
Consumer fraud enforcement action where the FTC settled with Air AI for misleading entrepreneurs with false earnings and refund guarantees. The company will be banned from marketing business opportunities and pay a suspended $18 million judgment with $50,000 for consumer relief. Violations included failure to provide required disclosures and false claims under the Telemarketing Sales Rule and Business Opportunity Rule.
$17.0M
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Consumer fraud and advertising enforcement action where the FTC sent warning letters to 97 auto dealership groups for deceptive pricing practices, such as advertising prices that exclude mandatory fees, misleading consumers about total costs. The letters stress the need for truthful and transparent pricing in the automotive industry.
$100.0M
The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.
The FTC issued a policy statement announcing it will not enforce COPPA against operators that collect age verification data under specific conditions. The policy aims to encourage the use of age verification technologies to protect children online. Operators must limit data use, ensure security, provide notice, and use accurate verification methods.