Amazon Faces Lawsuit Over Alleged Data Tracking Without Consent

Amazon faces a $5 billion class action lawsuit for allegedly tracking consumers’ movements and selling sensitive data without consent.

Key Takeaways

Amazon is accused of secretly tracking consumers through their cellphones using the Amazon Ads SDK embedded in apps.
The lawsuit claims Amazon collected and sold timestamped geolocation data, revealing personal details like home and work addresses.
Sensitive information regarding religious affiliation, orientation, and health issues was allegedly gathered without user knowledge.
The class action lawsuit seeks $5 billion in damages for unauthorized data collection and privacy violations.
This case highlights growing concerns over companies profiting from cellphone data collected without user consent.

Amazon’s Alleged Data Collection Practices Under Scrutiny

E-commerce giant Amazon has found itself at the center of a legal storm. A class action lawsuit filed in the federal court of San Francisco accuses the company of secretly tracking consumers through their cellphones and selling the collected data. The lawsuit, brought forth by Felix Kolotinsky of San Mateo, claims that Amazon exploited the Amazon Ads SDK embedded in various apps to gain unauthorized access to consumer phones.

The complaint alleges that Amazon collected timestamped geolocation data, which can reveal highly personal information about individuals. This data reportedly included sensitive details such as home and work addresses, religious affiliations, orientation, and even health-related information. The lawsuit argues that Amazon’s actions constitute a violation of California’s stringent digital privacy laws.

Amazon accused of secretly tracking shoppers — and selling sensitive data collected through backdoor https://t.co/aXsVp46Z6o pic.twitter.com/Nrlf00kPPl

— New York Post (@nypost) January 29, 2025

The Scope and Implications of Amazon’s Alleged Data Collection

According to the lawsuit, Amazon’s data collection practices were far-reaching and intrusive. The company is accused of building comprehensive consumer profiles without consent, using precise geolocation data, mobile advertising IDs, and device fingerprint information. This alleged data collection pipeline operated without providing consumers any opt-out options, raising serious concerns about privacy rights and data protection.

The lawsuit cites a study highlighting the ease with which individuals can be identified using minimal location data points. This revelation underscores the potential for misuse of such sensitive information and the importance of protecting consumer privacy in the digital age. The case, filed under number 25-00931 in the U.S. District Court, Northern District of California, seeks $5 billion in damages for Amazon’s alleged unauthorized data collection practices.

Legal Implications and Industry-Wide Concerns

The lawsuit against Amazon is not an isolated incident in the tech industry. A similar case was recently filed against Allstate in Texas, accusing the insurance company of illegally collecting and using private driving data without consent. These cases highlight a growing trend of legal challenges against companies for allegedly profiting from data collected surreptitiously from cellphones and other devices.

The allegations against Amazon raise serious questions about the extent to which tech companies are respecting user privacy and adhering to data protection laws. As consumers become increasingly aware of the value and sensitivity of their personal data, such lawsuits may serve as a wake-up call for the industry to reassess its data collection and usage practices. The outcome of this case could have far-reaching implications for how tech companies handle consumer data in the future.