Alexa and Amazon.com claimed in their original privacy policies that they did not keep personally identifiable information about customers in Alexa’s web-usage patterns database. In fact, there was such information in the database. The FTC said both Alexa and Amazon.com probably deceived their customers when making the original privacy policy statement.
The FTC decision does not rule out the possibility of taking further action against Amazon.com and Alexa. However, Jason Catlett of privacy watchdog Junkbusters says that the FTC’s failure to act could set a dangerous precedent for engaging in deceptive practices that could ultimately harm on-line retail.
Junkbusters has responded to the FTC decision by sending a letter requesting that the FTC orders Amazon.com to submit a full privacy audit. Last week, the FTC rejected a petition from Junkbusters and the Electronic Privacy Information Centre (EPIC) requesting that it investigate alleged deception in Amazon.com’s update of its privacy policy last year.
Catlett claims that by not punishing Amazon and Alexa for either transgression, the FTC could harm consumer confidence in e-commerce. He is quoted by Techweb.com as saying,“it sends a terrible message to companies that they can lie about their information practices, and that if they are caught, they can change their practices”.