The FTC Will Require Amazon To Overhaul Its Deletion Practices And Implement Stringent Privacy Safeguards To Settle Charges The Company Violated The Children's Online Privacy Protection Act Rule And Deceived Parents And Users Of The Alexa Voice Assistant
Portfolio Pulse from Happy Mohamed
The Federal Trade Commission (FTC) has mandated Amazon (AMZN) to revise its deletion practices and enforce strict privacy measures to settle allegations of violating the Children's Online Privacy Protection Act Rule (COPPA Rule) and misleading parents and users of the Alexa voice assistant service about its data deletion practices.
July 21, 2023 | 1:30 pm
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Amazon is required by the FTC to overhaul its deletion practices and implement stringent privacy safeguards. This comes after the company was charged with violating the COPPA Rule and deceiving users of the Alexa voice assistant service.
The FTC's mandate for Amazon to revise its deletion practices and enforce strict privacy measures could potentially lead to increased operational costs for the company. This, coupled with the negative publicity from the violation of the COPPA Rule and misleading data deletion practices, could have a short-term negative impact on Amazon's stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100