Business

Amazon Agrees to Pay $25 Million Fine for Privacy Violations

06-03
B.
B. Rose
Community Voice

This post includes content written by AI

In a recent settlement with the U.S. Federal Trade Commission (FTC), Amazon has agreed to pay $25 million in fines for violating privacy regulations. The e-commerce giant has also promised to overhaul its procedures for removing user-generated content. The violations were primarily related to the Children's Online Privacy Protection Act (COPPA), which found that Amazon illegally held children's data for a long period of time.

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Photo byPhoto by Christian Wiediger on Unsplash

COPPA is a law that regulates the collection and use of personal information from children under the age of 13. The law requires companies to obtain parental consent before collecting personal information from children and to promptly delete that information upon request.

Amazon's COPPA violation stems from collecting and storing voice recordings and other personal information from children without parental consent. Moreover, the company did not delete the data even though parents asked for it to be removed.

An FTC investigation found that Amazon had long been aware of its obligations under COPPA but had failed to take the necessary steps to comply with the law. The agency also found that the company had provided parents with misleading information about its data collection and retention practices.

Under the terms of the settlement, Amazon will pay a $25 million fine and implement various privacy protections. These measures include obtaining parental consent before collecting personal data from children, providing transparent information to parents about data collection and use, promptly deleting children's data upon request, and conducting regular audits to ensure compliance with COPPA.

The FTC's enforcement action against Amazon represents a major win for child privacy advocates. It serves as a strong reminder to businesses that they face severe consequences if they do not comply with the regulations set out by COPPA.

Amazon has expressed dissatisfaction with this decision but has agreed to honor the terms of the settlement. The company has also reaffirmed its commitment to protecting the privacy of its users, including children.

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B.
B. Rose
Writing about technology, history, politics, news, design, AI & more.