Amazon has agreed to pay a fine of $25 million to settle allegations made by the US Federal Trade Commission (FTC) stating that the company violated children’s privacy rights through its Alexa voice assistant.
The e-commerce giant might also have to cough up another $5.8 million for privacy violations associated with Amazon Ring.
The company was accused of retaining sensitive data for an extended period and failing to delete Alexa recordings upon parents’ requests. Moreover, Amazon’s doorbell camera unit, Ring, will also face the consequences of granting unrestricted access to customer data to its employees.
However, Amazon has denied FTC’s claims regarding Alexa and Ring.
“At Amazon, we take our responsibilities to our customers and their families very seriously. Our devices and services are built to protect customer’s privacy and to provide customers with control over their experience,” read the company’s response to The Cyber Express.
“While we disagree with the FTC’s claims regarding both Alexa and Ring and deny violating the law, these settlements put these matters behind us.”
US Federal Trade Commission fines Amazon, puts penalties on Amazon Ring
The FTC complaint highlighted Amazon’s misleading claims that it allowed users, including parents, to delete voice recordings collected by Alexa. However, the company failed to upheld the same.
It retained the data for an extended duration, using it unlawfully to enhance its Alexa algorithm, leading to penalties on Amazon Ring for privacy violations.
Amazon’s response to the allegations emphasized its commitment to customer privacy and control over its experience.
However, the FTC argued that Amazon sacrificed privacy for profits, accusing the company of misleading parents, storing children’s recordings indefinitely, and disregarding deletion requests.
The director of the FTC’s Bureau of Consumer Protection, Samuel Levine, expressed concern over Amazon’s actions, stating, “Ring’s disregard for privacy and security exposed consumers to spying and harassment. The FTC’s order clarifies that putting profit over privacy doesn’t pay.”
The FTC complaint also revealed incidents involving Ring, where thousands of employees and contractors had access to customers’ private spaces through video recordings.
It was discovered that an employee had viewed numerous video recordings of female Ring camera users in their intimate spaces, such as bathrooms or bedrooms.
The employee’s actions were only halted after being noticed by a colleague, highlighting the need for penalties on Amazon Ring.
Company defends Ring on privacy violations
Amazon defended Ring, claiming the company had addressed these issues independently years ago. However, the FTC firmly stated that Ring’s actions had violated privacy and security standards, resulting in penalties on Amazon Ring for its privacy breaches.
The e-commerce giant expressed disagreement with the FTC’s claims regarding both Alexa and Ring but stated that the settlements would resolve the matters at hand. However, this is just the latest in the several million-dollar penalties the company had to face on violating data policies.
In July 2021, Amazon found itself challenging the largest General Data Protection Regulation (GDPR) fine then.
The Luxembourg-based regulatory authority, Commission Nationale pour la Protection des Données (National Commission for the Protection of Data), imposed a staggering €746 million ($877 million) fine on the retail giant.
The case originated in France following a complaint lodged by La Quadrature du Net, an advocacy group dedicated to safeguarding privacy rights.
La Quadrature du Net outlined their concerns in a comprehensive document (PDF in French), accusing Amazon of various transgressions.
The allegations revolve around Amazon’s alleged use of customer data without explicit consent or adequate disclosure, the absence of accessible opt-out mechanisms without penalties, and insufficient options for users to revoke consent among others.
