FTC Settles with Ring Customers, Paying Millions in Amazon Settlement

In a shocking revelation, the U.S. Federal Trade Commission has uncovered that Amazon employees and contractors were accessing personal footage from Ring cameras without users’ consent. This breach of privacy has led to the FTC issuing $5.6 million in refunds to certain Ring customers who were affected by this unlawful activity.

The FTC found that Amazon-owned Ring did not have proper security measures in place to prevent hackers from accessing users’ accounts and footage. This violation of privacy has sparked outrage among consumers and raised concerns about the safety of smart home devices.

Amazon has faced legal consequences for these privacy breaches, settling two suits with the FTC in June 2023. The company was ordered to pay more than $30 million in civil penalties and customer refunds for violating the Children’s Online Privacy Protection Act Rule with its Alexa voice assistant and for the unauthorized access of Ring camera footage.

While Amazon denies violating the law, it has agreed to settle these matters with the FTC. The $5.6 million in refunds will be distributed to affected customers in the form of PayPal payments, with customers required to redeem them within 30 days.

This latest scandal has once again highlighted the importance of protecting personal data and privacy in the digital age. Amazon’s stock was up over 71% year over year, despite the negative publicity surrounding these privacy violations.