WASHINGTON, D.C. — Amazon.com Inc. will pay $2.25 million to settle allegations that it violated federal law by failing to provide identity theft victims with records needed to investigate fraudulent transactions made in their names, reports the Federal Trade Commission.
The settlement resolves claims that Amazon repeatedly failed to comply with Section 609(e) of the Fair Credit Reporting Act, which requires companies to provide victims of identity theft and authorized law enforcement agencies with application and transaction records related to fraudulent activity within 30 days of a request.
According to a complaint filed by the Department of Justice on behalf of the FTC, Amazon lacked a written policy for responding to such requests until early 2025, after learning of the agency’s investigation.
“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,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
The complaint alleges that Amazon customer service representatives frequently denied requests for records, citing security or privacy concerns, and in some cases required consumers to identify the fraudulent account holder before releasing information. Other consumers and law enforcement agencies acting on their behalf were told the requested records could not be accessed.
The FTC also alleged that Amazon failed to meet the law’s 30-day response deadline even in instances where records were eventually provided.
The $2.25 million civil penalty is the largest imposed for violations of Section 609(e), according to the FTC.
Under the proposed order, Amazon is prohibited from failing to comply with the provision in the future and must establish procedures to provide records requested by identity theft victims and authorized law enforcement agencies.
The company is also required to notify consumers how to request records under the Fair Credit Reporting Act and contact individuals who sought records from Amazon since April 2024 but did not receive them, informing them that additional records may be available.
The FTC voted 2-0 to refer the matter to the Justice Department and approve the proposed settlement. The complaint and proposed final order were filed in the U.S. District Court for the District of Columbia.
The case is the FTC’s second enforcement action under Section 609(e). The agency’s first case under the provision was brought against Kohl’s Department Stores Inc. in 2020.
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