Amazon Fined $2.25M for Withholding Evidence from Fraud Victims

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Amazon faces a $2.25 million penalty for obstructing access to transaction data during identity theft investigations, according to the FTC.

FTC Imposes $2.25 Million Penalty on Amazon

The U.S. Federal Trade Commission (FTC) has imposed a $2.25 million civil penalty on Amazon following allegations that the company violated the Fair Credit Reporting Act (FCRA) by restricting access to critical transaction records for identity theft victims. The enforcement action stems from claims that Amazon repeatedly denied consumers and law enforcement agencies access to documentation required to address fraudulent activities linked to their personal information.

FCRA Violations and Legal Implications

According to the FTC’s complaint, Amazon failed to provide victims of identity theft with records of unauthorized transactions conducted under their names, as mandated by Section 609(e) of the FCRA. Customer service representatives allegedly cited “privacy” or “security” concerns to justify withholding data, even when requests were made by individuals reporting fraud. In some cases, the company delayed disclosure of records beyond the 30-day window stipulated by the law.

The FTC also alleged that Amazon refused to share application and business transaction records with law enforcement agencies authorized to request such information on behalf of victims. The agency noted that some consumers attempted to compel compliance by forwarding copies of the FCRA and FTC guidance to Amazon, but these efforts did not result in timely access to records.

Settlement Requirements and Previous Regulatory Actions

The proposed settlement requires Amazon to ensure that lawfully requested records are provided to identity theft victims and law enforcement within 30 days. The company must also notify individuals who submitted record requests between April 2024 and the present if they have not yet received the information.

Compliance Measures

This penalty follows a pattern of regulatory actions against Amazon for data privacy violations. In 2023, the company paid $25 million to resolve allegations of children’s privacy law breaches related to its Alexa voice assistant. A $2.5 billion settlement in 2025 addressed claims that Prime membership practices used deceptive design tactics to trap users in recurring subscriptions. Earlier this year, Kohl’s Department Stores paid $220,000 to settle similar charges for denying access to fraudulent transaction records.

FTC’s Emphasis on Consumer Protection

The FTC’s enforcement action underscores the legal obligations of businesses to cooperate with identity theft investigations and adhere to consumer protection laws. The agency emphasized that failure to comply with FCRA requirements undermines victims’ ability to mitigate financial harm and resolve disputes effectively.