Amazon to pay $2.25 million to settle FTC identity theft case
Amazon agreed to pay $2.25 million in civil penalties to resolve a U.S. Federal Trade Commission case alleging violations of the Fair Credit Reporting Act by failing to provide transaction records to identity theft victims.
The U.S. Federal Trade Commission (FTC) and Amazon have reached a settlement requiring the company to pay $2.25 million in civil penalties to resolve allegations that it violated the Fair Credit Reporting Act (FCRA). The regulator claimed that Amazon refused to provide transaction records from its online retail business to identity theft victims and, in some cases, to law enforcement agencies.
Under the FCRA, companies must provide individuals whose identities have been stolen with records of fraudulent transactions made in their names within 30 days of a consumer request. The FTC's complaint alleged that Amazon customer service representatives denied some of these requests based on security or privacy concerns, while in other instances, company agents reportedly told victims they could not access the necessary records. In some cases where Amazon did provide the information, it was outside the 30-day window.
Amazon agreed to pay the penalty to settle the case without admitting wrongdoing. The company has committed to complying with FCRA requirements moving forward. The settlement is subject to court approval.
