The US Federal Trade Commission (FTC) has announced a $5.8 million settlement with Amazon.com’s Ring doorbell camera unit after a former employee was found to have spied on female customers in 2017 using cameras placed in bedrooms and bathrooms. The settlement also includes a separate $25 million payment by Amazon to resolve allegations of violating children’s privacy rights related to Alexa recordings. As reported by Reuters, these settlements are part of the FTC’s ongoing efforts to hold Big Tech accountable for prioritising data collection profits over privacy concerns. The agency is currently investigating Amazon’s $1.7 billion acquisition of iRobot Corp, announced in August 2022, and is conducting a separate antitrust probe into the company.
Amazon, which acquired Ring in 2018, has agreed to make certain changes to its practices as part of the settlement. While the company denies violating any laws, it stated that these settlements allow them to move forward.
The FTC’s investigation revealed that Ring provided its employees with unrestricted access to customers’ sensitive video data, enabling them to view, download, and transfer the content. The complaint cites an incident in 2017 when an employee accessed videos of at least 81 female customers and Ring employees without detection. The employee continued this misconduct for months until a colleague reported it, leading to termination. Other instances involved employees sharing customer recordings without consent and watching videos without the knowledge of the individuals involved.
As part of the settlement agreement, Ring is required to disclose to customers the extent of access that the company and its contractors have to their data. Additionally, since February 2019, Ring has implemented policies ensuring that most employees or contractors can only access a customer’s private video with their explicit consent.
FTC Commissioner Alvaro Bedoya emphasised that these settlements serve as a message to tech companies that the need for data collection does not justify illegal actions. The fines imposed on Amazon, amounting to $30.8 million, represent only a fraction of the company’s first-quarter profit of $3.2 billion.
The FTC’s complaint against Amazon alleges violations of rules protecting children’s privacy and deceptive practices related to Alexa usage. Amazon is accused of misleading users by promising to delete voice transcripts and location information upon request, which it failed to do. The FTC contends that Amazon unlawfully retained these voice recordings, using them to enhance the Alexa algorithm’s understanding of children, thereby benefiting its bottom line at the expense of children’s privacy.