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Amazon to pay more than $2M in FTC identity theft case
Settlement requires transaction records for victims within 30 days of a request
Key Takeaways:
- Amazon agreed to pay $2.25 million to settle U.S. claims disclosed June 29 that it withheld identity-theft records from customers.
- The FTC said Amazon made unreasonable demands on victims seeking legally required records about fraudulent purchases under the Fair Credit Reporting Act.
- The settlement requires Amazon to provide business transaction records for free within 30 days, while other FTC matters involving Amazon remain pending.
Amazon.com Inc. agreed to pay $2.25 million to settle U.S. claims that it routinely failed to provide records to help customers who were victims of identity theft.
The accord disclosed in a court filing June 29 follows an investigation by the Federal Trade Commission into allegations the company was not providing customers with legally required information about fraudulent purchases made in their name, as required by the Fair Credit Reporting Act.
The FTC referred the case to the Justice Department, which reached a settlement in May that requires Amazon to provide business transaction records free of charge to ID theft victims within 30 days of receiving a request, according to the filing in Washington federal court.
“Amazon often put identity theft victims through a Kafkaesque ordeal by demanding they identify the thief who stole their information before Amazon would release the records the law entitles them to — records that could help victims protect themselves and recover from the fraudulent conduct,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “The FTC will not allow companies to simply ignore their legal obligations, especially those designed to support and protect identity theft victims.”
Accord to the FTC, Amazon made unreasonable demands on customers who were seeking information to help fix fraudulent charges. In one instance, Amazon told a customer it could not share information about an account that fraudulently used their credit card, unless the customer was able to guess the name of the offending person, the FTC said in its complaint.
“We’ve resolved this matter with the FTC and have implemented process improvements for customers who believe they may be victims of identity theft,” Amazon said in a statement. “Customers who need assistance requesting their records can visit our Help Page to learn more.”
The FTC has several ongoing matters involving Amazon, including an antitrust suit from the Biden administration alleging it illegally monopolized parts of the online retail market, as well as an investigation into whether the company has deceived advertisers.
Amazon.com Inc. ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 15 on the TT Top 100 list of the largest private carriers and No. 1 on the TT Top 50 global freight list.
