In 2025, Amazon was at the heart of several major lawsuits—ranging from consumer class actions to landmark regulatory battles and victories against fraud. This guide outlines the key legal disputes, their backgrounds, outcomes, and broader significance for Amazon’s business and its customers.
Amazon Lawsuit: Main Legal Actions and Background
Prime Video Ads Class Action Lawsuit
In 2024, Amazon faced a proposed class action from Prime Video subscribers who argued that introducing commercials on Prime Video, unless users paid a new $2.99 monthly opt-out fee, constituted false advertising and a “bait and switch.” Plaintiffs alleged customers reasonably expected ad-free viewing to continue as part of their membership.
By July 2025, a federal judge in Washington dismissed the lawsuit with prejudice, siding with Amazon. The court held that the addition of ads was a permissible change to service benefits, explicitly covered by Amazon’s membership terms. It concluded that plaintiffs’ assumptions about perpetual ad-free service were not “reasonable,” and after several amended complaints, the case was closed without the possibility of further amendment.
FTC Lawsuit over Amazon Prime Enrollment and Cancellation (“Dark Patterns” Case)
The Federal Trade Commission (FTC) filed suit alleging that Amazon used manipulative user-interface designs (“dark patterns”) to trick hundreds of thousands of consumers into enrolling in automatically renewing Prime memberships and made it deliberately difficult to cancel. The complaint also claims these tactics served Amazon’s financial interests and intentionally slowed any effort to simplify the cancellation process.
Amazon denied the allegations. As of August 2025, the case is heading to trial (scheduled for September). In July 2025, a federal judge admonished Amazon for withholding evidence from the FTC during legal discovery, but aside from the public reprimand, no further penalties were issued at this stage. The outcome will determine the future of digital subscription practices and FTC’s enforcement power.
Amazon’s Lawsuit Against the U.S. Consumer Product Safety Commission (CPSC)
On March 14, 2025, Amazon sued the CPSC after the agency ordered Amazon to conduct wide-ranging product recalls—including for faulty carbon monoxide detectors, hair dryers, and children’s sleepwear—sold by third-party sellers on Amazon’s marketplace, many via its Fulfillment by Amazon program. CPSC classified Amazon as a distributor responsible for the safety, notification, and recall of these products.
Amazon’s lawsuit challenges this order, arguing it acts only as a logistics provider for many of these products—not a distributor or retailer—and that holding it responsible for recalls stretches federal law “beyond breaking point.” The company also asserted constitutional concerns about due process. The court stayed enforcement of the CPSC’s recall order pending resolution of the case.
Legal Action and Victory Against Fake Review Brokers
In 2025, Amazon won a significant court battle against operators of fraudulent websites that sold fake product reviews and created fake Amazon seller accounts. As part of the victory, Amazon was granted control over more than 75 websites marketing the sale of five-star and negative reviews. The court’s decision expands Amazon’s ability to protect the integrity of its marketplace against deceptive sellers and review manipulation.
Current Status of the Lawsuits (August 2025)
- Prime Video ads class action: Dismissed with prejudice in July 2025—no damages or injunction against Amazon.
- FTC “dark patterns” case: Set for trial in September 2025; court admonished Amazon for withheld documents but issued no further sanction.
- CPSC recall responsibility litigation: Ongoing—Amazon’s legal status as a distributor or logistics provider (and its liability for third-party product safety/recall) is to be determined by federal court.
- Fake reviews enforcement: Amazon secured a broad legal victory, gaining ownership of dozens of fraudulent domains and strengthening its consumer protections.
Broader Implications for Amazon and Consumers
- The outcomes will clarify how e-commerce platforms are regulated—especially regarding product safety, recall responsibility, and consumer subscriptions.
- Amazon’s actions against fake reviews signal a serious commitment to fighting fraud and maintaining customer trust.
- The FTC trial could create new digital business standards for subscription consent, renewal, and cancellation practices.
- With the dismissal of the Prime Video ads case, Amazon and other subscription businesses are now on firmer ground in modifying streaming benefits as long as contract terms allow it.
Frequently Asked Questions
Did Amazon lose the Prime Video ads lawsuit?
No, Amazon won—the case was dismissed by a federal judge, who found the company’s terms allowed such changes.
Is Amazon still facing lawsuits about Prime subscriptions?
Yes, the FTC lawsuit challenging alleged deceptive Prime practices goes to trial in September 2025.
What is at stake in the CPSC litigation?
The core issue is whether Amazon must act as a distributor responsible for recalling unsafe products sold through its marketplace, or whether it’s just a logistics provider for third-party sellers.
How does Amazon fight fake reviews?
Amazon actively sues operators of fake review networks, having recently gained court orders to take down dozens of fraudulent sites and accounts.
Conclusion
The Amazon lawsuits of 2025 are reshaping the landscape for digital commerce—forcing clearer rules for subscription services, affirming the limits of product liability, and establishing a tough stance against fraud. Their outcomes will have significant effects on consumers, regulators, and the broader U.S. retail landscape for years to come.
