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Amazon to Pay $31 Million to Settle FTC Privacy Charges

Amazon recently reached a settlement with the Federal Trade Commission (FTC) after facing two civil complaints. The allegations against the company involved Ring employees and hackers invading the privacy of customers through Ring cameras, and failing to delete recordings of children on its Alexa devices. In response, Amazon agreed to pay a total of about $31 million to resolve the charges.

Privacy Invasion of Ring Customers: The FTC’s Allegations

The Federal Trade Commission alleged that a Ring employee viewed thousands of video recordings belonging to female Ring customers whose cameras surveilled intimate spaces in their homes, such as bathrooms or bedrooms, and that Ring’s weak security let hackers take control of customers’ accounts and cameras.

As a consequence, Ring agreed to pay $5.8 million, to be used for refunds to its customers.

Failure to Delete Recordings of Children

The FTC and the Justice Department alleged that Amazon violated children’s privacy law by keeping children’s Alexa voice recordings indefinitely and failing to delete voice and location data when asked.

Amazon agreed to pay an additional $25 million civil penalty for the failure to delete recordings involving children.

To compensate Ring customers, the $5.8 million will be paid out as refunds.

Initial Incident and Investigations

According to the FTC, the employee viewed customers’ videos over several months and was stopped only when another employee discovered the misconduct.

Amazon’s Response and Settlement

Amazon said it disagreed with the FTC’s claims and denied violating the law, but agreed to the settlements to put the matters behind it. In total, it agreed to pay about $31 million over the privacy of Ring customers and of children using Alexa devices.

Magnitude of Security Breaches

According to the FTC’s Bureau of Consumer Protection, 55,000 Ring customers experienced serious breaches, including 910 cases of deep intrusions like unauthorized access to live feeds and stored videos.

The agency highlighted the distressing case of an 87-year-old woman residing in an assisted living facility who faced physical threats and harassment after a hacker gained control of her Ring camera.

Conclusion

The actions of those who used Ring cameras to spy on customers in private areas are deeply disturbing and indicative of a troubling mindset. Amazon’s settlement with the FTC demonstrates the consequences faced by companies that fail to protect privacy. By paying the penalty and offering compensation, Amazon aims to address the privacy violations and prevent similar incidents in the future.

Correction, 26 October 2026: this article said Amazon recorded its own female employees in private areas, that the FTC fined Amazon $5.8 million over Ring, that Amazon was found to have violated children’s privacy law, that victims would receive shopping vouchers and that Amazon acknowledged fault; the FTC alleged that a Ring employee viewed customers’ videos from their homes, the $5.8 million is for refunds to Ring customers, the Alexa charges were allegations settled without a finding of violation, and Amazon disagreed with the FTC’s claims and denied violating the law.