Amazon to pay $2.25M over alleged Fair Credit Reporting Act violations

Amazon FCRA settlement overview:

• Who: Amazon.com Inc. agreed to pay $2.25 million to resolve claims brought by the U.S. government.
• Why: The government claimed Amazon violated the Fair Credit Reporting Act (FCRA) by failing to provide identity theft victims with transaction records they were entitled to receive.
• Where: The proposed settlement was filed in the District of Columbia federal court.

AAmazon agreed to pay $2.25 million to resolve allegations that it violated the Fair Credit Reporting Act by refusing or delaying requests from identity theft victims seeking records related to fraudulent transactions.

The U.S. Department of Justice filed the lawsuit after receiving a referral from the Federal Trade Commission (FTC), alleging Amazon failed to comply with Section 609(e) of the FCRA, which requires businesses to provide certain application and business transaction records to identity theft victims within 30 days of receiving a valid request.

According to the complaint, Amazon entered into transactions with individuals who allegedly used stolen identities to obtain goods or services. The government claims that when victims later requested records to help investigate the fraud, Amazon often failed to provide the documents as required by law.

The FTC said some customers were forced through a “Kafkaesque ordeal” because Amazon allegedly required them to identify the person who stole their identity before releasing records.

The complaint also alleges Amazon denied some requests by incorrectly telling law enforcement officers they needed a subpoena or other legal process to obtain records on behalf of identity theft victims, even though the FCRA does not impose that requirement.

In other instances, the government claims Amazon failed to provide records within the 30-day deadline required by federal law.

Settlement requires Amazon to change identity theft practices

Under the proposed settlement, Amazon will pay a $2.25 million civil penalty and will be permanently prohibited from violating the FCRA’s identity theft records provisions.

The proposed order also requires Amazon to provide qualifying application and business transaction records to identity theft victims and authorized law enforcement agencies acting on their behalf.

In addition, Amazon must provide consumers with information explaining how identity theft victims can request records under the FCRA.

The settlement further requires Amazon to contact consumers who requested records since April 2024 but did not receive them and notify them that they may submit a new request.

The agreement also includes recordkeeping, compliance monitoring and reporting requirements designed to ensure Amazon complies with the FCRA going forward.

The proposed settlement resolves the government’s allegations without a trial. The complaint and proposed order do not include an admission of liability by Amazon.

Meanwhile, a consumer recently filed a class action lawsuit against Amazon alleging the company passed tariff-related costs on to consumers while falsely claiming it offered the lowest prices among major retailers.

What do you think about the allegations against Amazon? Let us know in the comments.

The government is represented by Lory Dione Alexander of the U.S. Department of Justice’s Civil Division, Enforcement and Affirmative Litigation Branch.

The Amazon FCRA lawsuit is United States v. Amazon.com Inc., Case No. 1:26-cv-02305, in the U.S. District Court for the District of Columbia.

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