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 increase was driven primarily by higher reinvested earnings and intra-company loans, indicating continued engagement by existing investors with Bangladesh.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans increased by 25.68 per cent, from $621.96 million to $781.68 million.
Bangladesh’s net FDI inflows increased by 39.36 per cent last year to $1,770.42 million compared with $1,270.39 million in 2024, the Bangladesh Bank said.
The increase was driven primarily by higher reinvested earnings and intra-company loans.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans rose by 25.68 per cent.
Equity capital remained broadly stable, rising by 1.84 per cent, from $544.64 million to $554.64 million in 2025, a release from Bangladesh Investment Development Authority said.
Greenfield project announcements declined by 16 per cent in 2025.
Fibre2Fashion News Desk (DS)
The company’s adjusted EBITDA, excluding Employee Stock Option Plan (ESOP) expenses, rose around 14 per cent YoY to ₹468 crore, while EBITDA margin improved by 20 basis points to around 9.3 per cent. Excluding the reciprocal tariff impact of around ₹36 crore and incremental losses of around ₹13 crore in Bihar and Guatemala, adjusted EBITDA margin stood at around 10.3 per cent.
Pallab Banerjee, managing director, Pearl Global Industries, said: “FY26 marked the company’s second consecutive year of double-digit growth and improved profitability. This performance further solidifies the position of Pearl Global’s diversified operating model and disciplined execution across geographies.”
Pearl Global Industries has reported its highest-ever FY26 revenue of ₹5,025 crore (~$523.93 million), up 11.5 per cent YoY, driven by volume growth and value-added products.
PAT rose 17 per cent to ₹270 crore (~$28.15 million), while Q4 revenue hit ₹1,314 crore (~$137 million).
The company shipped 78.1 million pieces.
Its net worth stands at ₹1,438 crore (~$149.93 million).
He said that geopolitical shifts and Gulf conflicts could lead to energy cost escalation, affecting raw material and logistics costs. However, the company remains prepared to manage these headwinds, supported by its diversified manufacturing base, strong order book, and broad market presence.
The profit after tax (PAT) increased 17 per cent YoY to ₹270 crore (~$28.15 million), the company said in a press release.
On a standalone basis, FY26 revenue stood at ₹1,081 crore, while adjusted EBITDA was ₹67 crore, with EBITDA margin improving by 60 basis points to 6.2 per cent, mainly due to cost restructuring. Standalone PAT rose to ₹69 crore from ₹55 crore in the previous year.
The company’s net worth stood at ₹1,438 crore (~$149.93 million) as of March 31, 2026, compared with ₹1,146 crore a year earlier.
“In FY26, Group delivered another year of resilient performance against a complex geopolitical backdrop. Group achieved, among others, two major milestones this year: revenue crossed INR 5,000 crore mark and installed capacity surpassed 100 million pieces per annum,” said Pulkit Seth, vice-chairman and non-executive director, PGIL.
Seth added that the global apparel industry faced tariff-related disruptions during FY26, with the company’s India operations impacted by tariffs and penal duties imposed by the US. However, he added that Pearl Global leveraged its diversified, multi-country manufacturing presence to mitigate these challenges and deliver double-digit growth.
For the fourth quarter (Q4) of FY26, PGIL posted its highest-ever quarterly revenue of ₹1,314 crore (~$137 million), up 6.9 per cent YoY. Adjusted EBITDA rose 13.7 per cent to ₹135 crore, with margin at 10.3 per cent, the highest EBITDA margin recorded by the company in any quarter. PAT for the quarter stood at ₹81 crore, up 24.6 per cent YoY, PGIL said in a press release.
Standalone revenue during the quarter stood at ₹304 crore, adjusted EBITDA at ₹24 crore, and PAT at ₹14 crore.
PGIL shipped its highest-ever volumes in Q4 FY26 and FY26, at 22 million pieces and 78.1 million pieces respectively. Its annual installed capacity crossed 100 million pieces, reaching around 101 million pieces.
The ongoing capex in Bangladesh is expected to be completed by the first half of FY27 and will add around 6-7 million pieces of capacity during the year.
Fibre2Fashion News Desk (SG)
PTA prices recorded notable declines across key Asian benchmarks, tracking crude oil weakness rooted in evolving geopolitical signals. The correction was broad-based, spanning China, Southeast Asia, and South Korea, while India**;s CIF price held steady reflecting the lag in import contract structures and limited spot availability in the domestic market on the day.
The *** per cent Polyester Yarn market witnessed a slightly negative trend during the assessed period, with mild price corrections observed across both yarn grades in the Asia Free on Board (FOB) China market. Prices for **s (*** per cent polyester yarn) declined from around $*.***/kg to nearly $*.***/kg, registering a decrease of approximately *.** per cent.
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