AMZN Amazon.com Inc

By Sabela Ojea

Amazon's Ring doorbell division is paying the U.S. Federal Trade Commission a $5.8 million fine to settle a claim over an alleged surveillance of its customers, according to an FTC filing.

The U.S. regulator said Thursday that Ring, the front-door monitoring device acquired by the ecommerce giant in 2018, will be required to delete data products including models and algorithms derived from videos the FTC says it unlawfully reviewed.

It will also have to put in place a privacy and security program with novel safeguards on human review of videos.

Ring didn't impose any technical or procedural restrictions on employees being able to download, save or transfer surveillance videos of customers until July 2017, the FTC said.

The ecommerce company didn't train its employees on how to treat customer's sensitive video data until May 2018, the FTC added.

"Ring ignored information security considerations when management believed they would interfere with growth," the FTC said.

At 15:11 E.T., Amazon shares were down 1.4% to $199.97.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

May 31, 2023 15:35 ET (19:35 GMT)

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