Amazon will pay $30mn to settle Alexa, Ring privacy violations
What's the story
Amazon was at the receiving end of two lawsuits by the US Federal Trade Commission (FTC) over privacy violations. However, the regulator has decided not to proceed further against the tech giant.
Do you know why? Well, Amazon agreed to pay more than $30 million to settle the lawsuits.
Let's take a look at why FTC sued the company.
Context
Why does this story matter?
Like the rest of the Big Tech, Amazon does not have a stellar privacy record.
The company has products that permeate various aspects of our lives. That gives it access to a large amount of data.
Data protection advocates have raised concerns about what the tech giant does with users' data. The FTC settlement sheds more light on the firm's activities.
Alexa
FTC sued Amazon over its handling of kids' voice data
Alexa, Amazon's cloud-based voice assistant, has always been considered a privacy hazard waiting to happen. Primarily because of the always-on feature and the company's data collection.
This time, it was about child privacy. The FTC alleged that Amazon fell short in its handling of kids' voice data.
The regulator accused the firm of violating the FTC Act and Children's Online Privacy Protection Act (COPPA).
Problem
Amazon allegedly kept voice recordings and geolocation of kids
The FTC said Amazon kept recordings of children's transcripts indefinitely by default till September 2019. The regulator added the company still held onto some voice recording and geolocation.
Amazon allegedly prevented parents from deleting their kids' data. The company disagreed with FTC's accusation.
However, it paid $25 million to settle the lawsuit. Per the company, it settled to put the matter behind it.
Ring
Ring employees and contractors accessed customers' data: FTC
Meanwhile, Ring, Amazon's video surveillance maker was also under attack from the FTC. The regulator said Ring employees and contractors had access to customers' sensitive video content.
According to FTC, Ring employees and Ukraine-based third-party contractors could view, download, and transfer customers' data for their own purpose.
They had access to data even if they did not need it to perform their jobs.
Payment
Amazon agreed to pay $5.8 million
In its complaint, FTC also said Ring employees accessed private Ring videos of women on at least two occasions. The spying allegedly continued for months.
Ring agreed to pay $5.8 million to settle the lawsuit. The company also agreed to start a data security program for the next 20 years.
The two lawsuits are examples of the FTC's strict attitude toward Big Tech.