The Cost of Non-Compliance in 2025: Major Fines and Key Lessons from US Regulatory Actions

Regulatory agencies worldwide have stepped up enforcement in 2025, imposing hefty fines on companies that misuse data, engage in deceptive advertising, or violate privacy laws. These penalties highlight the growing importance of compliance in today’s business environment. This post reviews some of the largest fines issued this year, detailing the companies involved, the nature of their violations, and the lessons businesses can learn to avoid similar consequences.

Regulatory agencies enforce compliance with significant fines

Major Fines and Violations in 2025

Several high-profile cases have drawn attention due to the size of the penalties and the nature of the offences. Below is a summary of the most significant enforcement actions:

Assurance IQ, LLC — $100 Million Fine

• Violation: Deceptive Telemarketing and Unfair Billing

• Details: Assurance IQ misled consumers about health insurance plan costs and coverage, including issues with pre-existing conditions and benefit caps. The company charged customers without their clear consent, violating the Telemarketing Sales Rule (TSR) and the Federal Trade Commission (FTC) Act.

• Impact: This case shows how deceptive sales tactics in sensitive sectors like health insurance can lead to severe penalties.

  
  

MediaAlpha, Inc. — $45 Million Fine

• Violation: Deceptive Lead Generation and Illegal Robocalls

• Details: MediaAlpha used misleading domain names that suggested government affiliation (e.g., ObamacarePlans.com) and celebrity endorsements to generate leads. This led to consumers receiving numerous robocalls promoting non-comprehensive insurance plans. The company violated the FTC Act and TSR.

• Impact: The case highlights the risks of using deceptive marketing to generate leads, especially when it involves impersonating government entities.

  
  

Restoro & Reimage — $25.5 Million+ in Redress

• Violation: Deceptive Tech Support Marketing

• Details: These companies tricked consumers into purchasing computer repair services through false claims about security threats. The settlement prohibits them from misrepresenting security issues or engaging in deceptive telemarketing.

• Impact: This enforcement action warns tech companies against misleading consumers about product or service needs.

  
  

TikTok — €530 Million Fine (Approx. $600 Million USD)

• Violation: Unlawful Data Transfers under GDPR

• Details: Ireland’s Data Protection Commission fined TikTok for transferring European Economic Area (EEA) user data to China without adequate safeguards. The company also provided misleading information during the investigation.

• Impact: This case underscores the strict requirements of data protection laws like GDPR and the consequences of failing to comply.

  
  

What These Cases Reveal About Regulatory Priorities

The enforcement actions from 2025 reveal several clear themes that companies should pay attention to:

Deceptive Lead Generation Carries Heavy Risks

Regulators are focusing on both the companies selling products and the lead generators supplying them. The FTC has emphasised that addressing unlawful lead generation is a priority, especially in sensitive areas such as health insurance. Assurance IQ and MediaAlpha demonstrate that misleading consumers to generate leads can result in multi-million dollar fines.

Transparency and Consent Are Non-Negotiable

Charging customers without explicit informed consent or misrepresenting product details leads to serious violations. Assurance IQ’s unfair billing practices and Restoro & Reimage’s deceptive marketing show that companies must be clear and honest about costs and services.

Data Privacy and Cross-Border Transfers Face Intense Scrutiny

TikTok’s fine highlights how regulators are cracking down on companies that transfer personal data internationally without proper safeguards. GDPR enforcement remains strong, and companies must ensure compliance with data protection laws to avoid costly penalties.

Misleading Marketing Can Trigger Multiple Violations

Using false endorsements, misleading domain names, or deceptive advertising can violate several laws simultaneously, as seen in MediaAlpha’s case. Companies must carefully review their marketing strategies to avoid crossing legal boundaries.

Practical Steps Companies Can Take to Avoid Fines

To reduce the risk of enforcement actions, businesses should consider the following:

• Implement Clear Consent Processes

Ensure customers explicitly agree to charges and understand what they are paying for.

• Review Marketing Materials for Accuracy

Avoid misleading claims, false endorsements, or confusing domain names that imply government affiliation.

• Strengthen Data Protection Measures

Comply with GDPR and other privacy laws, especially when transferring data across borders.

• Train Staff on Compliance Requirements

Educate sales and marketing teams about legal boundaries and ethical practices.

• Conduct Regular Audits

Periodically review business practices to identify and fix potential compliance gaps.

The Financial and Reputational Impact of Non-Compliance

Beyond the immediate financial penalties, companies face long-term damage to their reputation and customer trust when caught violating regulations. The large fines imposed in 2025 serve as a warning that cutting corners on compliance can be costly in multiple ways.

Businesses that prioritise transparency, respect consumer rights, and protect data will be better positioned to avoid regulatory scrutiny and build lasting customer relationships.