Title: Ring Settles with FTC, Pays $5.6 Million Refunds to Consumers Over Privacy Violations

New York, AP - Federal Trade Commission (FTC) has reached a settlement with Ring, an Amazon-owned company, over allegations of privacy violations, resulting in the company paying more than $5.6 million in refunds to impacted consumers. The settlement stems from a 2023 complaint filed by the FTC accusing Ring of failing to protect private video footage from unauthorized access and misuse.

The FTC's complaint asserted that Ring allowed its employees and contractors to access customers' private videos without their consent. It was alleged that Ring used this footage to train algorithms and for other purposes, infringing upon users' privacy rights. Additionally, the company faced charges of failing to implement adequate security measures, leading to hackers gaining control over customers' accounts, cameras, and videos.

As part of the settlement, Ring has been required to delete unlawfully obtained content and enhance its security protections. The company has also agreed to pay a substantial fine. The FTC plans to utilize a significant portion of the fine to issue refunds to eligible Ring customers affected by the privacy violations.

According to the FTC, 117,044 impacted consumers, who owned specific types of Ring devices, including indoor cameras, during the timeframe of unauthorized access, will receive refund payments via PayPal. These eligible customers must redeem their payments within 30 days. The FTC advises consumers to contact the case's refund administrator, Rust Consulting, or refer to the FTC's FAQ page on refunds for detailed information on the refund process.

In response to the settlement, Ring issued a statement, explaining that in 2019, individuals with stolen email addresses and passwords from other companies unlawfully logged into Ring accounts of certain customers who used the same credentials across multiple platforms. The company claimed to have promptly addressed this issue by notifying the affected customers and taking necessary measures to safeguard their accounts. However, Ring did not address the specific allegations of employees and contractors accessing video footage without authorization.

Earlier this year, Ring announced that it would discontinue its practice of allowing police departments to request doorbell camera footage from users. This decision came after facing criticism from privacy advocates.

The settlement between Ring and the FTC serves as a reminder to companies to prioritize users' privacy and implement robust security measures to safeguard personal data. The refunds aim to compensate affected consumers and raise awareness regarding the importance of privacy protection in the digital age.

As the investigation continues, the FTC remains committed to holding companies accountable for failing to safeguard users' data and violating their privacy rights.