The Federal Trade Commission (FTC) has recently announced that it will be distributing refunds totaling over $5.6 million to Amazon Ring customers as part of its settlement with the company. This settlement comes after allegations of security failures and violations of consumer privacy by Ring, a home security camera company owned by Jeff Bezos’ Amazon.
According to the FTC, Ring allowed unauthorized users, including employees and third-party contractors, to access customer videos without their consent. These videos were then used to train algorithms for product improvement and development, without proper disclosure to customers. The lawsuit filed by the FTC also revealed instances where employees allegedly watched private videos of customers, including intimate footage recorded in bedrooms and bathrooms.
The FTC further claimed that Ring failed to implement basic privacy and security protections, leaving customers vulnerable to hacking threats. As a result, hackers were able to gain control of consumers’ accounts, cameras, and videos, causing distress and harassment to many victims.
To rectify these issues, the FTC has initiated the distribution of refunds to eligible customers. Consumers who had a Ring account and certain types of Ring devices before February 1, 2018, are eligible for a refund. The payments will be sent via PayPal, and consumers should redeem them within 30 days.
Ring has responded to these allegations by stating that “bad actors” used stolen emails and passwords from other companies to unlawfully log into Ring accounts. The company claims to have addressed the security breach promptly by notifying affected customers and enhancing security measures.
In addition to the settlement with the FTC over its Ring division, Amazon has also agreed to pay $25 million to settle charges related to its Alexa voice assistant service. The company denies violating any laws and disagrees with the FTC’s claims.
As consumers, it is crucial for us to be aware of our rights and privacy when using smart home devices like Ring. The FTC’s actions serve as a reminder for companies to prioritize customer privacy and implement robust security measures to protect against potential breaches.
