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Amazoncom Inc amzn to Pay Million in Settlement for Alexa and Ring Privacy Violation Lawsuits

Amazon.com, Inc. (AMZN) to Pay $30 Million in Settlement for Alexa and Ring Privacy Violation Lawsuits

Amazon.com, Inc. (NASDAQ: AMZN) has reached a settlement agreement, agreeing to pay more than $30 million to settle two lawsuits filed against the company. The lawsuits alleged privacy violations involving Amazon’s Alexa voice assistant and Ring doorbell camera.

The Federal Trade Commission (FTC) made the decision to file charges against Amazon in two separate cases on Wednesday. These cases have the potential to compel Amazon to delete certain data collected through internet-connected devices powered by Alexa.

The FTC claims that Amazon deceived users over an extended period regarding its voice assistant, Alexa. Specifically, the agency alleges that Alexa recorded and stored children’s voices without their parent’s knowledge or consent. Even when parents requested the deletion of recordings, Amazon reportedly retained the transcripts. The FTC has ordered Amazon to delete all inactive accounts for children, geolocation data, and some voice information. In addition, Amazon faces a $25 million fine for violating the Children’s Online Privacy Protection Act.

The FTC also accused Amazon’s Ring subsidiary of allowing employees and contractors access to private consumer videos. In addition, the weak security practices exposed some accounts to hackers. These violations primarily occurred before Amazon acquired Ring, a home security camera company, in 2018.

Although Amazon disputes the allegations made by the FTC regarding Alexa and Ring, the company has agreed to the settlement to resolve the matter and move forward. The orders related to both Alexa and Ring settlements are still subject to approval by federal judges.