Amazon’s Ring Accused of Spying on Customers: Resolves with $5.8 Million Settlement

Jun 1, 2023

The Ring doorbell camera unit of Amazon has reached a settlement of $5.8 million with the US Federal Trade Commission (FTC) following an incident in 2017 where a former employee was discovered to have unlawfully monitored female customers. The surveillance took place using cameras that were positioned in bedrooms and bathrooms.

The FTC has made allegations against Ring, accusing the company of granting its employees unrestricted access to customers’ sensitive video data. This lack of regard for privacy and security allowed both employees and third-party contractors to view, download, and transfer the sensitive video data of customers.

During the course of the investigation, one troubling case emerged where an employee was found to have viewed videos recorded by a minimum of 81 female customers and Ring employees. Shockingly, this unauthorized spying went unnoticed for several months before being discovered by a colleague. Subsequently, the employee responsible for the misconduct was ultimately terminated.

Another incident highlighted in the FTC complaint involved an employee who unlawfully shared a customer’s recordings with their ex-spouse without obtaining the customer’s consent. This breach of trust further emphasizes the concerning mishandling of sensitive data by certain Ring employees.

Additionally, the FTC complaint disclosed an unsettling revelation where an employee provided Ring devices to individuals and secretly watched their videos without their knowledge or consent. These actions raise serious concerns about the protection of customer privacy and the potential for abuse of the video data collected by Ring’s devices.

In another case, Amazon has agreed to pay $25 million in order to settle accusations of violating children’s privacy rights. The allegations revolve around the company’s failure to delete recordings made by its voice assistant, Alexa, upon the request of parents. Additionally, it was found that Amazon retained these recordings for a longer duration than necessary, further infringing upon children’s privacy.

The settlement was outlined in the court filing and pertains to a separate case. It highlights concerns regarding the handling of sensitive data and the potential breach of privacy, particularly when it involves minors.

The settlement serves as a reminder of the importance of safeguarding individuals’ privacy rights, especially in cases involving children. It also underscores the need for companies to implement robust measures to protect and properly handle sensitive user data, ensuring compliance with regulations and respecting user privacy preferences.

The FTC is currently conducting a probe into Amazon’s acquisition of iRobot Corp for $1.7 billion. This deal, announced in August 2022, marks Amazon’s venture into the smart home devices market. Additionally, the FTC is actively engaged in a separate antitrust investigation specifically focused on Amazon, emphasizing its commitment to scrutinizing the company’s practices and ensuring fair competition.

In response to the allegations, Amazon said that it was ready to implement certain practice changes, especially for the Ring doorbell. However, the company expressed disagreement with the FTC’s claims concerning Alexa and Ring, and firmly denied any violation of the law. It further stated that the settlements reached with the FTC allowed the company to move forward and resolve these matters.