WASHINGTON, D.C. — The Federal Trade Commission announced a string of major enforcement actions last week, including a historic $2.5 billion settlement with Amazon and a multi-state crackdown on a deceptive cancer charity fundraising scheme.
In one of the largest consumer protection cases in its history, the FTC secured a $1 billion civil penalty and $1.5 billion in refunds for millions of consumers allegedly misled into unwanted Prime subscriptions. Regulators said Amazon deliberately designed confusing enrollment and cancellation flows that trapped customers in recurring charges.
FTC Chairman Andrew N. Ferguson called the case “a record-breaking, monumental win” for Americans frustrated with manipulative subscription practices. The order requires Amazon to clearly disclose Prime terms, offer a visible opt-out button, and provide simple cancellation using the same method as sign-up.
Separately, the FTC and 19 states filed suit against Kars-R-Us.com, Inc. and its operators, accusing them of deceiving more than 84,000 donors by funneling nearly all of $45 million raised for the United Breast Cancer Foundation into fees, salaries, and overhead. Only $126,815 — about 0.28% of donations — went to cancer screenings, according to the complaint.
A proposed settlement bans former company president Michael Irwin from fundraising and prohibits current president Lisa Frank and the company from misrepresenting future solicitations.
The agency also finalized a modified order in its review of Omnicom’s $13.5 billion merger with Interpublic Group, tightening restrictions to prevent ad agencies from coordinating to block publishers based on political or ideological views.
The actions reflect an aggressive posture by the FTC in scrutinizing corporate practices, fundraising abuses, and market concentration.
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