Amazon Agrees to $2.25 Million FTC Settlement Over Identity Theft Record Violations

E-commerce giant Amazon has reached a legal settlement with the Federal Trade Commission (FTC) over allegations that it failed to provide fraud-related records to victims of identity theft and attempted to conceal such incidents.

Under the settlement, Amazon has agreed to pay a civil penalty of $2.25 million—equivalent to approximately BDT 260 million.

According to international media reports published on Wednesday, the settlement resolves allegations that Amazon violated the Fair Credit Reporting Act (FCRA).

Alleged Failure to Provide Fraud Records

Under the Fair Credit Reporting Act, companies are legally required to provide victims of identity theft with records of fraudulent transactions made in their name, free of charge, within 30 days of receiving a valid request.

However, according to the FTC's complaint filed in court, Amazon repeatedly failed to comply with this legal obligation.

The complaint alleges that when customers requested records of unauthorized purchases made using their names or credit cards, Amazon customer service representatives frequently refused the requests, citing privacy and security concerns. In some cases, victims were reportedly told that Amazon employees were unable to access the requested information.

The FTC further alleged that some victims encountered particularly unusual responses, including being told they would have to correctly identify the individual who stole their identity before Amazon could release the relevant records.

Delays and Refusals

According to the FTC, Amazon also declined to provide requested records to certain law enforcement agencies investigating identity theft cases.

Even when records were eventually provided, the company allegedly failed to meet the statutory 30-day deadline in numerous instances.

FTC Bureau of Consumer Protection Director Christopher Mufarrige said in a statement:

"Amazon withheld records that identity theft victims were legally entitled to receive, causing unnecessary hardship. Companies cannot evade their legal responsibilities in this manner."

Amazon Responds

Following the settlement, Amazon said it had resolved the matter with the FTC and had already implemented changes to simplify and improve the process for identity theft victims seeking access to transaction records.

The company stated that the updated procedures are intended to make it easier for affected customers to obtain the information they are legally entitled to receive.

//DBTech/BMT/OR//