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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Fashion
US lawmakers introduce Last Sale Valuation Act to end customs loophole
“This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back,” Dr Cassidy said in a press release.
US Senators Bill Cassidy and Sheldon Whitehouse have introduced the Last Sale Valuation Act to close the ‘first sale’ customs loophole that lets importers underpay duties.
The bipartisan bill would base tariffs on final sale values, strengthen US Customs enforcement and curb duty evasion.
Supporters say it will protect American manufacturers, workers and federal revenue.
If passed, the bipartisan measure would grant clearer enforcement authority to US Customs and Border Protection (CBP), streamline valuation reviews and reduce disputes over documentation, while curbing mis-invoicing and related-party pricing schemes linked to tariff evasion and illicit financial activity.
The legislation has drawn support from the American Compass, the Coalition for a Prosperous America and the Southern Shrimp Alliance.
“Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the US,” said Mark A DiPlacido, senior political economist at the American Compass, adding that closing the judicially created ‘first sale’ loophole would reduce duty evasion, simplify enforcement and increase customs revenue.
Jon Toomey, president of the Coalition for a Prosperous America, said the bill is “an important first step in restoring customs integrity,” ensuring duties are paid on the true commercial value of imported goods and helping level the playing field for American manufacturers and workers.
Fibre2Fashion News Desk (CG)
Fashion
Rieter responds to higher raw material prices
Rising global political and economic tensions have driven sustained increases in raw material and energy costs, impacting the textile machinery sector.
Rieter has faced mounting input expenses amid strong demand and price hikes for various materials.
The company has so far absorbed the additional costs but will implement price adjustments from March 2026 as pressures persist.
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Fashion
US company Brooks Running’s revenue up 16% in 2025
“Running continues to gain extraordinary momentum around the world as more people choose movement as part of their approach to health and wellness,” said Dan Sheridan, Brooks CEO. “Our opportunity ahead is incredibly exciting and I have great confidence in the entire Brooks global team. Following a record 2025, we enter 2026 energised by the innovations and programmes we’ll deliver to runners and retailers worldwide.”
Brooks Running closed 2025 with record global revenue, up 16 per cent year-over-year, marking its ninth straight year of growth.
Strong gains came from North America, EMEA, and Asia Pacific–Latin America, led by a surge in China.
Growth was driven by performance innovation, strong footwear sales, and new lifestyle collections and collaborations.
In EMEA in 2025, the performance running footwear market grew 14 per cent in France and 21 per cent in Germany with Brooks outpacing both 22 per cent and 28 per cent, respectively, the company said in a press release.
In 2025, ten Brooks footwear styles posted year-over-year revenue growth of 20 per cent or more. The Glycerin series, featuring Brooks’ new DNA Tuned midsole foam, delivered 33 per cent revenue growth and a 27 per cent increase in unit sales year over year, accelerated by a 46 per cent year-over-year revenue surge in Q4.
At Paris Fashion Week in January 2025, Brooks unveiled its new lifestyle footwear collection, which celebrates the brand’s 112-year heritage as a leader in sport and answers customer desire for performance-inspired silhouettes to wear on and off the run. Brooks partnered with streetwear pioneers and visionaries to launch multiple sought-after collaborations including the Brooks x STAPLE Adrenaline GTS 4 with New York-based Jeff Staple and the Brooks x RSVP Gallery Caldera 8 with the renowned Don C.
Fibre2Fashion News Desk (RR)
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