Amazon to pay over $2.25M in FTC identity theft settlement

Amazon.com Inc. will pay $2.25 million to settle U.S. Federal Trade Commission (FTC) allegations that it withheld identity-theft records from customers. The settlement, disclosed in a June 29 court filing, stems from an investigation into Amazon’s failure to provide legally required transaction records to victims of identity theft under the Fair Credit Reporting Act. The Justice Department reached the accord in May, mandating that Amazon provide business transaction records free of charge to identity theft victims within 30 days of a request. The FTC criticized Amazon’s practices, stating that the company often demanded victims identify the thief before releasing records, creating unnecessary hurdles. In one case cited by the FTC, Amazon refused to share account details tied to fraudulent credit card use unless the victim could guess the offender’s name. Amazon acknowledged the settlement and stated it has implemented process improvements for identity theft victims, directing affected customers to its Help Page for assistance. The FTC has additional pending matters involving Amazon, including an antitrust lawsuit alleging monopolistic practices in online retail and an investigation into deceptive advertising practices. Amazon ranks No. 1 on Transport Topics’ Top 100 list of North America’s largest logistics companies and No. 1 on the TT Top 50 global freight list.