Fashion
Amazon to pay $2.5 billion to settle legal case over misleading Prime subscriptions
Published
September 27, 2025
Amazon has agreed to make a one-off $2.5 billion payment to settle the U.S. court case in which the online retail giant was accused of deceiving tens of millions of consumers into subscribing to its Prime service.
Under the agreement reached between Amazon and the U.S. consumer protection authority (FTC), the Seattle-based company will pay $1.5 billion to compensate affected subscribers, while a further $1 billion will be paid to the US Treasury as a penalty.
“Today, the FTC (…) has won a monumental and unprecedented victory for the millions of Americans weary of deceptive subscriptions that seem impossible to cancel,” said FTC Commissioner Andrew N. Ferguson in a statement.
“Amazon and our executives have always respected the law, and this agreement allows us to move forward and focus on innovation to serve our customers,” the company said in a statement, which, through this agreement, avoids a conviction or any admission of the allegations.
In 2024, Amazon was the leading fashion retailer in the United States, capturing 16.2% of the U.S. apparel market. A category that, along with high-tech, is among the marketplace’s flagship offerings. In France, Amazon is the third-biggest clothing retailer by volume, across all channels, behind Vinted and Kiabi, according to the new consumer barometer from the Institut Français de la Mode.
“Dark patterns” to fool customers
This case is part of a series of recent lawsuits brought in the U.S. under both Democratic and Republican administrations to curb the unchecked dominance of several major technology companies, such as Google and Apple, after years of governmental leniency. With regard to Prime, the FTC brought this action in 2023, accusing Amazon of knowingly deploying manipulative interfaces, known as “dark patterns”, so that, at the point of purchase, consumers would also subscribe to the Prime service for $139 per year.
This paid subscription offers a number of additional services, including free, fast delivery, discounts in certain supermarkets and access to Amazon’s video platform. The company faced two main allegations: that it gained subscribers without their explicit consent, by making it very difficult to click the right buttons to refuse the subscription, and that it created a deliberately complex cancellation system, internally nicknamed “Iliad”, after Homer’s poem about the long and difficult Trojan War.
Amazon promises change
Amazon was also accused of charging its customers before disclosing the full terms and conditions of the subscription. The case began on Monday with a jury trial in federal court in Seattle, presided over by Judge John Chun. Judge Chun is also overseeing another case brought by the FTC against Amazon, this time alleging an illegal monopoly. This other case will go to trial in 2027.
Under the terms of the agreement reached on Thursday, Amazon has committed to obtaining explicit consent before any subscription or charge, and to simplifying cancellation procedures, under a protocol it must follow for ten years. Amazon has consistently disputed the allegations, saying it has improved its sign-up and cancellation processes. Last week, Judge Chun also found that Amazon had violated an online shopper protection law by collecting billing data from Prime subscribers before explaining the terms of use.
The FTC based its case in part on the ROSCA Act, which came into force in 2010 and prohibits charging for online services that are activated by default, without clearly stating the terms, without obtaining explicit customer consent, and without providing simple cancellation procedures.
(with AFP)
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The bank had trimmed its benchmark interest rate by 25 basis points in May to support growth.
The Central Bank of Sri Lanka recently kept its overnight policy rate unchanged at 7.75 per cent considering both global and domestic developments.
GDP grew by an annual 4.8 per cent in H1 2025, and inflation may hit its 5-per cent target by mid-2026.
The 2025 GDP growth target is 4.5 per cent.
Core inflation is also expected to pick up, and stabilise thereafter around the headline inflation target.
A statement by the bank said that gross domestic product (GDP) expanded by an annual 4.8 per cent in the first half (H1) this year, with inflation expected to hit its target of 5 per cent by mid-2026.
Reflecting strengthening domestic demand, core inflation is also expected to pick up, and stabilise thereafter around the headline inflation target. Medium term inflation expectations remain anchored around the inflation target, the statement said.
The country is targeting 4.5 per cent GDP growth this year.
The bank’s monetary policy board feels the current monetary policy stance will support steering inflation towards the target of 5 per cent.
Headline inflation based on the Colombo consumer price index (CCPI) turned positive in August this year, ending eleven months of deflation.
A delegation of the International Monetary Fund will be in Colombo soon to conduct another round of review.
Fibre2Fashion News Desk (DS)
The Q2 increase primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.
US real GDP rose at an annual rate of 3.8 per cent in Q2 2025, to the third estimate released by the Bureau of Economic Analysis.
In Q1 2025, it fell by 0.6 per cent, revised estimates show.
The Q2 rise primarily reflected a drop in imports and a rise in consumer spending.
These movements were partly offset by decreases in investment and exports.
US real gross output rose by 1.2 per cent in Q2 2025.
Real GDP was revised up by 0.5 percentage point (pp) from the second estimate, primarily reflecting an upward revision to consumer spending.
Real final sales to private domestic purchasers—the sum of consumer spending and gross private fixed investment—increased by 2.9 per cent in Q2 2025, revised up by 1 pp from the previous estimate.
From an industry perspective, the increase in real GDP reflected increases of 10.2 per cent in real value added for private goods-producing industries and 3.5 per cent for private services-producing industries. These were partly offset by a decrease of 3.2 per cent in real value added for the government.
Real gross output increased by 1.2 per cent in Q2 2025, reflecting increases of 0.6 per cent for private goods-producing industries and 1.7 per cent for private services-producing industries. These were partly offset by a decrease of 0.7 per cent for the government.
The price index for gross domestic purchases increased by 2 per cent in Q2 2025, revised up by 0.2 pp from the previous estimate.
The personal consumption expenditures (PCE) price index increased by 2.1 per cent, revised up by 0.1 pp. Excluding food and energy prices, the PCE price index increased by 2.6 per cent, also revised up by 0.1 pp.
Real gross domestic income (GDI) increased by 3.8 per cent in Q2 2025, revised down by 1 pp from the previous estimate. The average of real GDP and real GDI increased by 3.8 per cent, revised down by 0.2 pp, a BEA release said.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $6.8 billion in Q2 2025, a downward revision of $58.7 billion.
Fibre2Fashion News Desk (DS)
The aim is to secure duty-free access to its largest export destination in the period following graduation from the least developed country (LDC) status in 2026, according to commerce secretary Mahbubur Rahman.
Bangladesh is keen on finalising talks on an economic partnership agreement (EPA) with the EU by 2028.
The negotiations are, however, yet to start.
The aim is to secure duty-free access to its largest export destination in the period following graduation from the LDC status in 2026, commerce secretary Mahbubur Rahman said.
Concluding the EPA negotiations with the EU may take three years, he noted.
The government has given approval to begin the negotiation process with the EU for that, he told a seminar on the Bangladesh-US tariff issue organised by the Bangladesh Institute of International and Strategic Studies (BIISS).
Concluding the EPA negotiations with the EU may take three years and the EU has assured that it will allow zero-duty trade benefits for Bangladesh up to 2029, Rahman was cited as saying by domestic media reports.
The government is prioritising signing free trade agreements (FTAs) with its major trade partners. It has concluded the final round of negotiations for signing an EPA with Japan. The first round of negotiations for signing a Comprehensive Economic Partnership Agreement (CEPA) with South Korea was completed last month.
On reducing the trade gap with the United States, Bangladesh has been constructing warehouses to facilitate the import and sale of US cotton, he added.
Fibre2Fashion News Desk (DS)
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