by B.N. Frank, Activist Post:
Over the years, countless experts have warned about privacy and cybersecurity risks with all “smart” technology. In regard to “smart” home devices, university researchers released additional warnings about it last year. While Amazon may not be the only company guilty of collecting private data on consumers (including children) without their consent via smart devices, the Federal Trade Commission (FTC) recently announced the agency will be taking legal action against the company for it and possibly other offenses as well.
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From Children’s Health Defense / The Defender:
Amazon Illegally Harvested Kids’ Data Via Alexa-Powered ‘Smart’ Speakers
The Federal Trade Commission plans to sue Amazon over allegations the company illegally collected and used children’s data via its Alexa-powered smart speakers, according to reports by Politico and Bloomberg.
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The Federal Trade Commission (FTC) plans to sue Amazon over allegations the company illegally collected and used children’s data via its Alexa-powered smart speakers, according to reports by Politico and Bloomberg.
Citing individuals familiar with the issue, the two media outlets said the FTC recommended filing a complaint against Amazon on the basis that the collection of data from children under age 13 violated the Children’s Online Privacy Protection Rule (COPPA).
The U.S. Department of Justice (DOJ) may file the lawsuit on the FTC’s behalf as early as next month, Bloomberg reported.
The FTC is obligated to first refer its complaint to the DOJ’s civil division, which will then have 45 days to bring a case, according to Politico. If the DOJ declines to sue, the FTC can then opt to proceed on its own.
This potential lawsuit comes four years after several advocacy organizations, including the Campaign for a Commercial-Free Childhood (now known as Fairplay) and the Center for Digital Democracy, filed a complaint with the FTC against Amazon, citing two products: the Echo Dot Kids Edition and FreeTime (since rebranded Kids+).
The news also comes amid a push by the FTC to target Big Tech firms for a range of alleged anti-competitive practices.
According to the 2019 complaint, Amazon held onto voice recordings indefinitely and also kept children’s personal data — even after users attempted to delete it.
The groups also claimed Amazon did not properly inform parents regarding the exact information it collected from children, did not include a privacy policy and did not verify that it had parental permission to collect data.
Following the submission of the complaint in 2019, Amazon claimed the two products in question were compliant with COPPA, Bloomberg reported.
COPPA penalties are limited to slightly over $50,000 per violation. However, each affected user is legally considered a separate violation, meaning the total fine against Amazon could be significantly higher.
FTC Chair Lina Khan, in remarks made last week, said existing law “prohibits firms from conditioning access to certain services on endless collection of data,” adding that the law includes “substantive limitations on when firms can be collecting data.”
Khan has developed a reputation as a Big Tech skeptic. In 2017, she published a legal paper in the Yale Law Journal characterizing Amazon as a modern monopolist whose market power required “addressing.”
The paper referred to an “antitrust paradox,” wherein Amazon has been able to amass significant market power, attaining an anticompetitive position even as it uses its logistical advantages to provide consumers with lower prices.
The paper argued in favor of restoring “traditional antitrust and competition policy” or applying “common carrier obligations and duties” traditionally required of telecommunications, transport and pipeline companies.
Amazon has taken issue with Khan in the past. In 2021, the company filed a petition with the FTC arguing that Khan should be recused from investigations involving Amazon, due to her past criticisms of the company.
According to The Wall Street Journal (WSJ) reports, the FTC has not publicly responded to the petition, and similar, previous attempts by Facebook also failed.
