Amazon has agreed to a $25 million settlement with the Justice Department and the Federal Trade Commission (FTC) over allegations that the company violated federal children's privacy laws through its Alexa personal assistant platform. The settlement includes a permanent injunction requiring Amazon to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule), and the FTC Act.
The government accused Amazon Alexa of unlawfully storing children's voice recordings and information about their locations, and sometimes failing to delete that data despite requests from parents. Alexa is a voice-activated service provided by Amazon through its Echo smart speakers, its "Alexa App," and other devices and applications.
The allegations date back to May 2018 when Amazon started offering voice-activated products and services for children under 13 years old. The government's complaint, filed in the U.S. District Court for the Western District of Washington, claimed that Amazon violated COPPA, the COPPA Rule, and the FTC Act by retaining children's voice recordings indefinitely, failing to delete requested information, and engaging in unfair privacy practices.
As part of the settlement, Amazon will delete inactive child profiles, unless a parent requests their retention. The company has also agreed to notify parents of these changes and to make disclosures about its retention and deletion practices regarding geolocation and voice information.
In a statement, Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of protecting children online and ensuring that companies do not misrepresent how children's personal information is handled. Director Samuel Levine of the FTC's Bureau of Consumer Protection added that companies cannot retain children's data indefinitely and must respect users' deletion requests.
Amazon, in a previous statement, stated that it takes customer privacy seriously and has implemented privacy protections in its children's products and services. While the company disagrees with the FTC's claims and denies violating the law, it believes that the settlement puts the matter behind them.
In summary, Amazon has agreed to a settlement to resolve allegations of violating children's privacy laws through its Alexa platform. The settlement includes a penalty of $25 million, a permanent injunction, and measures to address the alleged violations.