Amazon Agrees to $30.8 Million Settlement Over Privacy Claims

Amazon has agreed to a settlement totaling $30.8 million in response to allegations of customer privacy violations. This includes a $5.8 million settlement following claims by the US Federal Trade Commission (FTC) that a former Amazon employee accessed Ring security cameras to spy on female customers in their private spaces, such as bedrooms and bathrooms, during 2017.

In a separate agreement, Amazon will pay $25 million to settle allegations regarding children’s privacy breaches. The FTC accused Amazon of not adequately deleting audio recordings captured by Alexa smart speakers, even when parents requested the deletion, and retaining the recordings longer than necessary.

While Amazon disagreed with the FTC’s characterization of its actions and denied any legal wrongdoing, the company opted for settlement to resolve the issue. Amazon stated, “Our devices and services are built to protect customers’ privacy, and to provide customers with control over their experience.”

Ring, an Amazon-owned company, asserted that it had already addressed these issues independently years prior to the FTC’s investigation.

The FTC’s proposed orders, pending approval by a federal judge, stipulate that Ring must erase any data accessed unlawfully and implement enhanced security measures, including multifactor authentication. Additionally, Amazon is required to refrain from using deleted geolocation and voice data for its products and establish a comprehensive privacy program related to geolocation usage.

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