Amazon will pay $2.25 million to resolve a Federal Trade Commission investigation into its handling of identity theft complaints. The settlement mandates the company provide free business transaction records to customers claiming fraud within 30 days of their request. This move addresses allegations that Amazon routinely withheld records crucial for victims to recover from unauthorized purchases.
The FTC challenged Amazon for imposing unreasonable demands on customers seeking legally required information under the Fair Credit Reporting Act. In some cases, Amazon allegedly required victims to identify the perpetrators before releasing records that could help in dispute resolution. Such practices forced identity theft victims to navigate complex and burdensome procedures, preventing timely access to essential evidence.
The settlement, finalized through the Department of Justice and filed in federal court, aims to streamline victim support by ensuring records are delivered promptly and without cost. Amazon has announced improvements to its processes for identity theft claims, directing affected customers to its Help Page for assistance in obtaining records.
The FTC continues to pursue multiple investigations involving Amazon. These include an ongoing antitrust lawsuit from the Biden administration accusing Amazon of monopolistic practices in online retail, and a probe into potential deceptive practices toward advertisers. Meanwhile, Amazon remains a leading logistics and freight entity in North America, ranking first on key industry lists.