Amazon Settles with FTC for Over $30 Million in Data Privacy Lawsuits

On Wednesday, Amazon agreed to pay over $30 million to the U.S. consumer protection agency (FTC) to settle lawsuits regarding user data privacy violations. The FTC had recently filed a complaint against Ring, a subsidiary of Amazon specializing in smart doorbells and security cameras, alleging that the company provided access to all customer videos to employees and hundreds of contractors based in Ukraine, “whether or not they needed it to perform their tasks.”

The complaint further asserted that Ring had disregarded information security concerns when the management believed it could hinder growth.

As part of the agreement with Amazon, the tech giant will pay $5.8 million to resolve these lawsuits. A spokesperson for Ring stated, “Ring had already addressed these issues on its own years ago, well before the FTC’s inquiry began. We disagree with the FTC’s allegations and deny any wrongdoing, but this agreement resolves the matter so that we can focus on innovation for our customers.”

In parallel, Amazon will also pay $25 million to the federal agency to settle another complaint related to Alexa, its voice assistant found in Echo brand smart speakers and displays. According to the FTC, the company had unlawfully stored personal data (including users’ voices, geographical location, and information about children) that it had promised to delete.

The settlement clarifies that Amazon does not admit guilt nor deny it. Both agreements must be approved by the court to take effect.

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