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Marketplace Tech

FTC doubles down on data privacy enforcement with Amazon settlements

Marketplace Tech

American Public Media

Technology, News

4.61.2K Ratings

🗓️ 5 June 2023

⏱️ 8 minutes

🧾️ Download transcript

Summary

Last week, Amazon agreed to pay more than $30 million to settle two complaints brought by the Federal Trade Commission over allegations the company violated user privacy with its Ring video security system and Alexa audio assistant. The FTC said Amazon gave employees too much access to users’ private videos and left Ring systems open to hacking. The agency also said Amazon Alexa devices violated child privacy law by retaining kids’ voice recordings for years and that the company used consumer audio and video recordings to train algorithms without consent. Amazon, while agreeing to the proposed settlement, denied it broke any laws and said the issues had long since been addressed. Ring also released a similar statement. Marketplace’s Meghan McCarty Carino spoke with Makena Kelly, a politics reporter at The Verge, about the nonmonetary penalties facing Amazon.

Transcript

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0:00.0

Marketplace Morning reports new Skin in the Game series explores what we can learn about

0:04.6

money and careers from the $300 billion video game industry. Plus, here how an Oakland-based

0:11.0

program helps young people get the skills they need to break into this booming industry.

0:15.9

Listen to Skin in the Game and more from the Marketplace Morning report wherever you get your

0:20.7

podcasts. Amazon has eyes and ears inside millions of homes and the FTC is looking into that.

0:30.2

From American Public Media, this is Marketplace Tech. I'm Megan McCarty-Karino.

0:43.7

Last week, Amazon agreed to pay more than $30 million to settle two complaints brought

0:50.0

by the Federal Trade Commission over allegations the company violated user privacy

0:55.3

with its ring video system and Alexa audio assistant. The FTC said Amazon gave employees

1:02.4

too much access to users' private videos and left ring systems open to hacking.

1:08.8

The agency also said Amazon Alexa devices violated child privacy law by retaining

1:14.8

kids voice recordings for years and that the company used consumer audio and video recordings

1:21.5

to train algorithms without consent. Amazon in agreeing to the proposed settlement denied

1:27.8

it broke any laws and said the issues had long since been addressed. But it's not just

1:33.4

financial penalties the company faces according to McKenna Kelly, the politics reporter at the verge.

1:39.9

Both of these orders I think are similar in the same vein where they

1:45.0

instruct Amazon to not use any of this improperly accessed data whether it's the voice

1:50.8

information or the customer videos to create new products, new services or better the services

1:56.8

that they already have. And then I think there's also in both of them it bars them from misrepresenting

2:04.2

their certain privacy policies and informing customers more blatantly about the ways that they

2:10.6

collect and use the data from the services and the products that these customers use.

2:16.4

And the FTC complaints also included allegations that the ring systems were vulnerable to third-party

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