In a bid to clear their names from a controversy brought by the FTC, Amazon has settled for as much as $30 million for its alleged breach of data and privacy of the public. The complaint centers on its Amazon Alexa and Ring services which kept data from children to further enhance their technology, with years of allegedly preventing parents from deleting it.
The latest proceedings center on Amazon's denial of violating any laws, despite settling a massive price to keep their name off the controversy.
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Amazon Settles $30M for Alleged Ring and Alexa Violations
Amazon has reached a settlement agreement with the Federal Trade Commission (FTC), agreeing to pay as much as $30 million to resolve a lawsuit that accused the company of violating the public's data and privacy with its Ring and Alexa services. The lawsuit alleged that Amazon had unlawfully retained children's voice and geolocation data and prevented parents from deleting it.
Although Amazon denies any wrongdoing and disputes the FTC's claims as per its latest blog post and it has chosen to settle the lawsuit to avoid a protracted legal battle.
It will be a separate payment for Amazon, with $25 million for allegedly keeping children's voice data, and $5.8 million for failing to restrict access to Ring's security videos.
While Amazon vehemently denies any violation of the law and maintains that it has complied with all relevant regulations, the company decided to settle the lawsuit with the FTC to avoid prolonged litigation and potential reputational damage.
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Privacy Violations of Amazon Against Children
According to CNET, The lawsuit brought by the FTC alleged that Amazon had violated the Children's Online Privacy Protection Act (COPPA), which imposes strict requirements on the collection and use of personal information from children under the age of 13.
The complaint focused on Amazon's practices related to its Alexa services, specifically concerning the retention of children's voice recordings and geolocation data without parental consent. According to the allegations, Amazon stored these records to enhance Alexa's ability to recognize speech patterns and accents of children who interacted with the virtual assistant.
Amazon and its Lawsuits
The lawsuit which erupted towards the end of March is a significant complaint against Amazon, particularly for those unaware of the issue. The FTC has intended to sue the company for its alleged wrongdoings, centering on the many violations it had for the public's privacy.
Amazon also faced several lawsuits for what is available on its e-commerce marketplace, and among the most controversial are the donkey meat products on its platform. While other platforms claimed that they would stop selling it, Amazon continued to offer it to the public.
Amazon has reached a settlement with the FTC, with the company compelled to pay up to $30 million to resolve a lawsuit alleging data privacy violations in connection with its Ring and Alexa services. While Amazon denies any wrongdoing, it will have to settle the case to avoid a protracted legal battle.
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