U.S. — The Federal Trade Commission fined Amazon $2.25 million on June 30 to settle claims that the company did not provide assistance to customers who were victims of identity theft. The FTC accused Amazon of violating the Fair Credit Reporting Act (FCRA) by refusing to give customers information about purchases made with fraudulent accounts.

The FTC alleged that individuals affected by identity theft often encountered a process where support agents would not provide records related to a fraudulent account unless the victim could identify the person who opened it. One instance cited by the FTC involved a victim who attempted to guess the fraudulent account owner’s name more than 30 times. Amazon reportedly did not remove the victim’s credit card information from the unauthorized account.

The FTC also claimed that Amazon failed to respond to identity theft victims’ requests for records within the 30-day period mandated by the FCRA. An Amazon spokesperson stated that the company has resolved the matter with the FTC and implemented process improvements for customers who believe they may be victims of identity theft.

Why It Matters

The settlement addresses allegations that Amazon did not adhere to consumer protection requirements outlined in the Fair Credit Reporting Act. The specified fine and the company's stated improvements indicate the resolution of regulatory action regarding how Amazon handles identity theft claims, particularly concerns about providing victims with necessary information within established timelines.