It often starts small. A gym charges you after cancellation. A "free trial" turns into a monthly bill. An online store refuses a refund for a defective product. Many people let it slide, but these are not accidents. Each one is a consumer rights violation that quietly costs people money every day.
That's the contradiction of 2025: stronger consumer laws on paper, yet more ways than ever for companies to stretch, bend, or quietly ignore them.
Imagine taking back control. By questioning charges, challenging misleading terms, and knowing your rights, you quickly see how many "standard practices" are unlawful. Informed consumers are already winning refunds, replacements, and settlements.
The takeaway is simple: power starts with awareness. The following examples show how companies violate consumer rights and how you can stay one step ahead.
Key takeaways:
- Hidden fees still drain consumers' wallets: Many companies hide extra charges until checkout despite new FTC rules. Always compare the advertised price to the final total and save screenshots as proof of the distinction.
- Subscription traps remain a major complaint: Businesses often auto-renew or make cancellation difficult. Under ROSCA, you must get clear terms and easy cancellation options.
- Privacy violations are growing fast: From data breaches to health apps sharing sensitive information, the misuse of personal data is on the rise. Read privacy policies, limit tracking, and claim refunds when eligible.
- You have the right to dispute and repair: Dispute credit errors under the FCRA and use third-party repairs without voiding warranties under federal law. Keep written proof of every dispute or service.
- Settlemate makes claiming your money easy: Settlemate identifies eligible claims, files them on your behalf, and tracks payouts, allowing you to receive payment faster.
10 critical consumer rights violations to watch for in 2025
Even with stronger oversight, many businesses continue to push legal limits. The following ten consumer rights violations highlight the areas where the biggest risks lie in 2025:
1. Junk fees and hidden pricing tricks
Hidden "junk fees" now account for billions in corporate revenue. In response, the Federal Trade Commission finalized a Junk Fees Rule that requires live-event ticket sellers and lodging providers to display the total price, including mandatory fees, upfront.
Effective May 12, 2025, the rule bans bait-and-switch pricing and requires businesses to clearly disclose all extra charges, such as service or resort fees, before customers pay. Regulators estimate that the rule could save consumers more than $1 billion annually.
Case study: Live‑event tickets
Before the rule, ticket sites often advertised a low "base price" only to add service fees, facility charges, and processing fees at checkout. Now, ticket sellers must display the all-in price as the most prominent number on the page and clearly disclose any excluded fees, such as state taxes, before checkout.
If you attended a concert or stayed in a short‑term rental where the price jumped dramatically at checkout after July 2024, you may have grounds for a refund or a class‑action claim.
Active settlements:
- Booking.com - $9.5 million junk fee settlement: Booking Holdings, the parent of Booking.com, settled with the Texas Attorney General over accusations that it hid mandatory fees (resort, amenity, destination, utility charges) until after consumers reached checkout.
- HTG / ATG Tickets - ~$997,380 ticket fee settlement: A class action resolved claims that ATG Tickets illegally hid order processing fees during ticket purchases. The settlement covers customers who paid undisclosed fees during the ticketing process.
Your rights and action steps:
- Always compare the advertised price with the total at checkout; the price on the product page must include all mandatory fees.
- Document any "processing" or "resort" fees added at the last minute. Keep receipts.
- File claims for class action lawsuits when available; these are real checks, not scams.
- If a company refuses to honor the advertised price, report the violation to the FTC.
2. Unauthorized auto-renewals and subscription traps
Subscription traps remain one of the biggest consumer rights violations in 2025. Many companies still enroll users without explicit consent or make cancellation unnecessarily difficult.
The Restore Online Shoppers' Confidence Act (ROSCA) now requires sellers to disclose terms before billing, obtain express permission, and offer a simple "click-to-cancel" option.
Case: Amazon Prime settlement
In 2024, the FTC accused Amazon of registering millions of customers for Prime without their consent and using complex cancellation processes. The 2025 settlement requires Amazon to pay $1 billion in penalties and $1.5 billion in refunds. Eligible customers who joined or tried to cancel between June 2019 and June 2025 will receive up to $51 per account, automatically credited. Amazon must now display clear opt-out buttons and cannot hide cancellation steps.
Know your rights under ROSCA:
- Companies must obtain explicit consent before charging you. Scroll boxes or hidden pre‑checked boxes are illegal.
- Sellers must provide easy cancellation via the same channel used for sign-up; a call center cannot insist on using snail mail.
- If you are charged after cancellation, discuss the charge immediately and report the company to the FTC.
3. False advertising and deceptive marketing
From hair‑care labels to seafood menus, false advertising continues. The Federal Trade Commission Act prohibits deceptive or misleading representations, and consumers can recover money through class‑action suits.
Common scams:
- "Made in USA" claims: Olaplex misrepresented certain products as made domestically and agreed to a settlement providing $5 vouchers.
- "Non‑Drowsy" medicines: Robitussin labeled products as "non‑drowsy" even though they contained doxylamine, a sedating ingredient. Eligible buyers may claim cash.
- Greenwashing in restaurants: A class‑action lawsuit accuses Red Lobster of promising sustainable lobster and shrimp while sourcing from suppliers that allegedly harm marine ecosystems.
- Ann Taylor/Loft false discounts: Outlet stores advertised fictional original prices to make "sale" prices seem more attractive; the 2025 settlement offers an $11 voucher.
How to spot deception and act:
- Read ingredient lists, product origins, and health claims skeptically.
- Keep your receipts and packaging since companies often require this proof to process cash settlements.
- When checking for greenwashing, research certification labels and confirm that companies back their sustainability claims with third-party verification.
- Join class actions through reputable administrators.
4. Data breaches and misuse of personal information
Data breaches remain one of the fastest‑growing consumer harms. Companies that fail to safeguard personal data can violate state and federal privacy laws, including the Gramm-Leach-Bliley Act, state consumer-protection statutes, and the Biometric Information Privacy Act (BIPA).
Settlements in 2025 highlight the scale of the problem:
- FuboTV (Video Privacy Protection Act): Sports-streaming service FuboTV agreed to a $3.4 million settlement for improperly sharing viewing histories, paying approximately $15–$50 per subscriber.
- Formula 1 fan data: Formula One's U.S. rights holder agreed to a $5.5 million VPPA settlement over unauthorized disclosure of streaming data.
- Sysco data breach: Food distributor Sysco has reached a settlement (valued at up to $5,000 per victim) for a data breach that impacted employees and customers.
How to protect yourself from data breaches:
- Use unique passwords and enable multi‑factor authentication to lessen the damage from breaches.
- Monitor your credit. Under federal law, you're entitled to free annual credit reports from each bureau.
- Join class actions promptly - these settlements often include free credit‑monitoring services.
5. Sharing sensitive health data and mental-health privacy
Health information is among the most sensitive data consumers share, yet some companies continue to misuse it. Many telehealth and mental-health apps collect medical histories, diagnoses, and prescription data, then share that information with advertisers or analytics partners without clear consent.
These actions can violate federal privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA) and the Restore Online Shoppers' Confidence Act (ROSCA).
Case study: Cerebral, Inc.
The FTC found that mental-health provider Cerebral required users to complete lengthy cancellation procedures, continued billing after cancellation, and disclosed sensitive health data to social media companies. The 2025 settlement provides over $5 million in refunds for more than 40,000 consumers and prohibits the company from sharing or selling health data without explicit, affirmative consent.
Your rights and action steps:
- Read privacy policies carefully before sharing any medical or mental-health information.
- Opt out of optional data tracking and sharing features within health apps.
- If you are billed after cancellation, dispute the charge immediately and file a complaint with the FTC or the Department of Health and Human Services (HHS).
- If a company shares your health data without permission, monitor ongoing class action settlements because you may qualify for compensation.
6. Debt collection abuses and phantom debts
Debt collectors are required to follow the Fair Debt Collection Practices Act (FDCPA), which prohibits harassment, false threats, and misrepresentation of debts. Yet in 2025, abusive collection practices remain widespread.
In May 2025, the FTC charged Global Circulation Inc. (GCI) with threatening consumers with arrest, lawsuits, and wage garnishment for debts they did not owe. The proposed order would permanently ban GCI and its owner from debt collection, impose a $9.68 million suspended judgment, and require full compliance with the FDCPA and the Gramm-Leach-Bliley Act.
Signs of illegal debt collection:
- Collectors threaten arrest, lawsuits, or wage garnishment for debts you do not owe.
- They claim ties to law enforcement or courts without providing documentation.
- They refuse to send a written validation notice verifying the debt.
- They pressure you to pay through wire transfer, gift cards, or other untraceable methods.
Your rights and action steps:
- Request the collector's name, address, and the original creditor's information; you must receive written verification within five days.
- Never share personal or financial information until the debt is verified and confirmed.
- Report harassment or false threats to the Consumer Financial Protection Bureau (CFPB) and your state attorney general.
- Under the FDCPA, you can sue collectors who break the law and recover up to $1,000 in statutory damages, plus attorneys' fees.
7. Predatory lending and abusive payday loans
High-cost payday and installment lenders often design loans that trap borrowers in endless debt cycles. To address this, the Consumer Financial Protection Bureau (CFPB) reinstated a 2017 safeguard, effective March 30, 2025, known as the "two strikes and you're out" rule. If a lender's attempt to withdraw funds from a borrower's bank account fails twice, the lender may not attempt it again without explicit authorization.
Case study: ACE Cash Express settlement
In early 2025, the CFPB fined ACE Cash Express $15 million for illegally pressuring borrowers into repeated short-term loans and using deceptive collection tactics. The bureau found that ACE Cash targeted consumers who had already fallen behind, encouraging them to "renew" loans instead of paying them off. The settlement includes $5 million in restitution and $10 million in civil penalties.
Your rights and action steps:
- You can cancel authorization for electronic debits at any time by contacting both your bank and the lender.
- Lenders must disclose the annual percentage rate (APR) and total repayment cost clearly before you agree.
- Many states cap payday loan interest rates; always check your state's lending limits before borrowing to ensure compliance with the law.
- If a lender continues to debit your account after two failed attempts, report them to the CFPB and your state financial regulator.
8. Credit reporting errors and sham investigations
Credit report errors can quietly cost you thousands through higher interest rates and loan denials. The Fair Credit Reporting Act (FCRA) protects consumers by giving them the right to dispute and correct inaccurate information. Yet in January 2025, the Consumer Financial Protection Bureau (CFPB) sued Experian for allegedly conducting sham investigations into consumer disputes.
The bureau found that Experian ignored properly filed claims, failed to inform consumers of outcomes, and even reinserted deleted errors. The CFPB aims to stop these practices and secure compensation for affected individuals.
How to exercise your rights:
- Request your free annual credit report from all three bureaus.
- Submit disputes in writing with supporting documents, and send them by certified mail for proof.
- Keep all correspondence; if a bureau fails to respond within 30 days, you may have grounds for legal action.
- Under the FCBA, if you dispute unauthorized charges within 60 days, your liability is limited to $50.
9. Children's privacy violations and deceptive kid-directed data collection
Online games and apps increasingly target kids with manipulative "loot boxes." These are randomized purchases that mimic gambling.
In January 2025, the FTC filed a complaint against HoYoverse (the developer of Genshin Impact) for marketing loot boxes to children, collecting personal information without parental consent, and using dark patterns to induce spending. The proposed order requires HoYoverse to pay a $20 million penalty, block children under sixteen from buying loot boxes without parental consent, reveal the odds and pricing of loot boxes, and delete any personal data collected from children.
What parents should know:
- Under the Children's Online Privacy Protection Act (COPPA), companies have to obtain verifiable parental consent before collecting data from children under 13.
- Dark patterns, such as confusing in-game currencies or disguised purchase buttons, are prohibited.
- If your child was charged for unauthorized in-app purchases, contact the platform to request a refund and report the company to the FTC.
- Pay attention to the age ratings and reviews of games; avoid those with loot‑box mechanics.
10. Warranty restrictions and right-to-repair violations
Manufacturers continue to undermine the right-to-repair movement by placing unlawful restrictions on product warranties. Some still claim that using third-party parts, independent repair shops, or even removing a sticker voids coverage.
The Magnuson-Moss Warranty Act forbids tying warranty coverage to specific parts or services unless those parts are provided free of charge or the seller receives explicit FTC approval.
In July 2024, the FTC issued warning letters to eight companies, including aeris Health, Blueair, Medify Air, Oransi, ASRock, Zotac, and Gigabyte, for using illegal "warranty void if seal removed" labels and similar restrictions.
Know your repair rights:
- You have the right to use third-party parts or repair services without voiding your warranty.
- Manufacturers cannot require you to return to them for repairs unless they provide the parts or service at no additional charge.
- "Warranty void if removed" stickers are illegal. You can remove them without affecting your coverage.
- If a manufacturer refuses warranty service because you used aftermarket parts, file a complaint with the FTC and your state attorney general.
How to spot a consumer rights violation fast: quick checklist
Use this one-minute checklist to catch the most common issues before they cost you money:
- Price transparency: If the total cost appears only at checkout, take a screenshot. Report it under the FTC Junk Fees Rule.
- Subscriptions: Make sure you gave explicit consent and can cancel through the same channel you used to sign up.
- Billing statements: Review bank and credit-card statements monthly. Watch for small or unfamiliar charges and dispute them within 60 days under the FCBA.
- Credit reports: Check reports from all three bureaus. If an error remains after 30 days, file a complaint with the CFPB.
- Product safety: Verify recalls through the CPSC or FDA if a product or food seems unsafe or defective.
- Communications: Register with the Do Not Call Registry, revoke unwanted text or call consent clearly, and save screenshots as evidence.
How Settlemate helps you claim what's yours
Consumer rights violations happen every day, from hidden junk fees and unauthorized charges to false advertising and data misuse.
Each one has a legal remedy, and many include class action settlements or refunds that often go unclaimed. Settlemate ensures you never miss them.
Here's how it works:
- Finds settlements you qualify for: Settlemate monitors new class actions, recalls, and regulatory refunds, then matches them with your purchases and subscriptions.
- Handles the claim process: It completes the forms, attaches receipts, and files everything on your behalf, so you don't have to worry about paperwork or deadlines.
- Keeps you informed: Your personalized dashboard tracks every claim and notifies you when a payout is approved or sent.
Start reclaiming what is already yours.
Download the Settlemate app from the App Store or Google Play and never miss a settlement again.
