Amazon's Biggest Class Action Settlements
Amazon's most significant recent enforcement action was the 2023 FTC order requiring Amazon to pay $25 million to resolve Alexa privacy violations (retaining children's voice recordings indefinitely without parental consent) and $5.8 million for Ring doorbell privacy violations (allowing employees unrestricted access to customers' private camera footage). Amazon also settled a class action over Amazon Prime auto-renewal practices that failed to adequately disclose automatic recurring charges, paying $8.7 million in a California settlement. Amazon delivery drivers have secured class action settlements over wage theft, denied overtime, and improper expense deductions — recovering millions for DSP (Delivery Service Partner) workers across multiple states. Amazon marketplace sellers have sued Amazon over price-fixing algorithms that raised consumer prices, resulting in ongoing litigation.