📺 Stream EntrepreneurTV for Free 📺

Ring Camera Owners Will Receive $5.6 Million in Payments After FTC-Amazon Settlement. Here's How Many Customers Are Eligible — And How They'll Get the Cash. The payouts are a result of a June 2023 settlement with Amazon over privacy violation allegations against the camera company.

By Emily Rella Edited by Jessica Thomas

Key Takeaways

  • The U.S. Federal Trade Commission will distribute $5.6 million to Ring camera customers whose personal videos might have been unlawfully accessed by hackers and Amazon employees.
  • In June 2023, Amazon settled with the FTC based on accusations that the company did not implement proper security measures for certain Ring customers.
  • Roughly 117,044 Ring customers will receive a payout.
entrepreneur daily

If Amazon employees or hackers accessed personal footage from your Ring camera without your consent, you might be entitled to a hefty payout.

The U.S. Federal Trade Commission is issuing $5.6 million in refunds to certain Ring customers after it found that employees and contractors were unlawfully accessing private video content to use for algorithm training and other internal purposes.

Amazon-owned Ring was also accused of not implementing proper security protections to prevent hackers from accessing users' accounts and footage without their consent.

"These practices led to egregious violations of users' privacy," the FTC said in Thursday's notice.

In June 2023, Amazon settled two privacy-related suits with the FTC, one related to Ring and one stating that it violated the Children's Online Privacy Protection Act Rule (COPPA Rule) with its Alexa voice assistant. Amazon was ordered to pay more than $30 million in civil penalties and customer refunds.

"While we disagree with the FTC's claims regarding both Alexa and Ring, and deny violating the law, these settlements put these matters behind us," Amazon said in a statement to Entrepreneur at the time.

The FTC said it will divide the $5.6 million into roughly 117,044 PayPal payments to customers who owned certain types of Ring devices during the alleged unauthorized use. Affected customers must redeem their PayPal payments within 30 days.

Related: Police Can No Longer Request Ring Camera Footage From Amazon

Amazon did not issue a statement on this week's matter but told the Associated Press that affected customers were notified if their data had been "exposed in a third-party, non-Ring incident" by hackers. The company did not comment on the allegations of employees and contractors accessing customer data.

Amazon was up over 71% year over year as of Friday afternoon.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Business News

These Are the 10 Most Profitable Cities for Airbnb Hosts, According to a New Report

Here's where Airbnb property owners and hosts are making the most money.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Productivity

Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.

Starting a Business

This Couple Turned Their Startup Into a $150 Million Food Delivery Company. Here's What They Did Early On to Make It Happen.

Selling only online to your customers has many perks. But the founders of Little Spoon want you to know four things if you want to see accelerated growth.