Amazon fined USD 30 million for privacy violation

Amazon suffered a setback when it was fined by the US agency FTC, in a case involving the illegal use of images and voice of customers.

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The FTC and Amazon have reached a settlement regarding cases of customer spying by Ring and Alenxa. According to the FTC, Amazon kept the recordings of children even after parents requested that the footage be deleted.

Ring gained fame when it was initially featured on the American show Shark Tank. Amazon acquired the company in 2018 for USD 1 billion, as part of its “home care” services.

The accusations state that Ring employees would have had unrestricted access to customer videos. In short, Ring is an electronic doorbell with videos. Employees were given access to hundreds of videos of at least 18 female customers. In addition, Ring cameras recorded bathrooms and other intimate places.

"Amazon's history of misleading parents, keeping children's recordings indefinitely, and disregarding parental opt-out requests violated COPPA (Children's Online Privacy Protection Act) and sacrificed privacy for profits," said Samuel Levine, head of consumer protection of the FCT.

According to FTC Commissioner Alvaro Bedoya, "When parents asked Amazon to delete their children's Alexa voice data, the company didn't delete everything." Thus, the agency ordered the deletion of inactive children's accounts, as well as certain voice and geolocation data.

Amazon disagrees with the FTC's allegations and denies violating any laws. "Our devices and services are built to protect customers' privacy and to provide control over their experience," the company said in a statement.

Now, the FTC's proposed orders must be approved by federal judges.

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