FTC fines Amazon $2.25 million for blocking identity theft records

The settlement defines a clear boundary for platform accountability in data-sharing, signaling that internal 'privacy' policies cannot supersede statutory mandates. For streaming services and digital marketplaces handling recurring payments, the FTC's emphasis on response timelines and the invalidity of circular authentication logic is a warning against automated brush-offs in customer support. The requirement to proactively remediate unfulfilled requests from previous years indicates that technical friction in compliance leads to direct regulatory exposure. Operators should track whether federal scrutiny of 'dark patterns' and data transparency prompts more aggressive enforcement of older, underutilized consumer protection statutes like the FCRA.

The Identity Theft Records case is part of a broader regulatory escalation against Amazon’s consumer practices. In September 2025, the FTC secured a record $2.5 billion settlement—the largest in the agency's history—after alleging that Amazon used 'dark patterns' to deceptive enroll millions into Prime memberships while making cancellation intentionally difficult, per FTC reports. That agreement included $1.5 billion in consumer redress and $1 billion in civil penalties. In January 2026, the agency began distributing these refunds, which capped at $51 per affected customer, while simultaneously moving forward with a separate monopolization case against the company in the Western District of Washington.

Simultaneous to these consumer protection efforts, the FTC's 2026-2030 Strategic Plan, published in April 2026, reaffirms a focus on 'Big Tech' and data security while restoring mission language about avoiding 'unduly burdening' legitimate business activity. Despite this framing, the agency has maintained pressure on e-commerce transparency; in September 2025, it secured a $2 million settlement with the marketplace Temu under the INFORM Consumers Act regarding third-party seller disclosures. This regulatory landscape suggests the FTC is increasingly utilizing niche or newly passed statutes—from INFORM to the FCRA—to impose operational changes and monetary penalties on dominant platform operators.