The Federal Trade Commission, early in 2021, recommended a lawsuit against Amazon over its privacy and blunders in the security of the Ring Division. The facts are sketchy, but few situations spring to memory right away. One instance was when a flaw in Ring’s Neighbors software allowed users to gather locations from postings done on the app. That blunder was discovered in January of this year. However, Amazon acknowledged firing employees for spying on videos of users, which is beyond disturbing.
There are additional privacy issues with Ring, such as when the login details of 3,600 Ring camera owners were exposed in 2019. If a lawsuit is brought, any or all of these instances might be the subject of it. Employees of the Federal Trade Commission advocated doing just that early this year, according to the sources. There are rumors that when the Amazon lawyers pushed for the settlement with the party, FTC Chain Lina Khan had to intervene. She later suspended the entire work.
After taking over the position in FTC, Khan withdrew the suit as she wanted more comprehensive suit proceedings against the e-commerce giant. Khan and FTC co-workers say that privacy considerations should never be left out from antitrust ones. The FTC is now faced with the problem of launching privacy procedures against the e-commerce giant. Still, the legislation of pre-parliamentary power might help government agencies move more quickly.
The FTC has already targeted Amazon. For example, the FTC demanded a settlement of $60 million with Amazon against improperly stored driver tips. The FTC will give Amazon Flex drivers a check of 139,507 and a PayPal payment of 1,620.
To add more, Amazon has negative reviews over its $8.45 billion acquisition of Metro-Goldwyn-Mayer Studios. The possibility of Amazon purchasing extra MGM content to add to their already massive collection should raise red flags. With MGM’s huge content library under its hands, Amazon may have enormous dominance in the OTT market and hike its prices further for streaming purposes.