FTC: Alexa Data Abuse

Author:
•  Elisa Jillson, U.S. Federal Trade Commission (FTC) – reprinted

Article Abstract

The Federal Trade Commission (FTC) underscores critical violations in Amazon and Ring’s handling of consumers’ private data, voice recordings, and video footage. Amidst AI’s burgeoning presence, the complaints highlight companies’ negligence towards customer privacy, breaching the FTC’s Biometric Policy Statement. Emphasizing the pivotal nexus of AI and privacy, the FTC urges caution in data collection, stressing the need for consumer control.

The complaints unveil lapses in consent mechanisms, inadequate data control, and compromised security, prompting the FTC to warn companies about the repercussions of mishandling sensitive data. Protection of biometric data, safeguarding kids’ privacy, and lawful data acquisition emerge as FTC’s priority areas, ensuring enforcement against data misuse.

From the FTC: Hey, Alexa! What are you doing with my data?

What you say in your home, what you do in your home. It doesn’t get more private than that. But, according to two recent FTC complaints, Amazon and Ring used this highly private data – voice recordings collected by Amazon’s Alexa voice assistant and videos collected by Ring’s internet-connected home security cameras – to train their algorithms while giving short shrift to customers’ privacy. These matters, the first announced since the FTC’s new Biometric Policy Statement, contain important lessons for companies using AI, biometric data, and other sensitive information.

AI and privacy should work hand-in-hand

In this age of AI, developers want more and more data – oftentimes, no matter its source. But be careful when collecting or keeping consumer data. Under Section 5’s unfairness standard, the FTC doesn’t look just at AI’s potential benefits, but also at the costs to consumers. According to the complaints, Amazon and Ring failed that test. The FTC alleged Ring’s data access practices enabled spying and harassment, while Amazon’s permanent retention of voice data and shoddy deletion practices exposed consumers’ voice recordings to the risk of unnecessary employee access. The message for businesses: The FTC will hold companies accountable for how they obtain, retain, and use the consumer data that powers their algorithms. As the Commissioners put it in their joint statement in the Alexa matter, machine learning is not a license to break the law.

Consumers – not companies – control their data

Some companies think they’re free to use personal data in their possession for any purpose they choose. Not so fast. The FTC complaints against Amazon and Ring make clear that companies that ignore consumers’ rights to control their data do so at their peril. In its complaint, the FTC says Ring gave all employees and contractors access to customers’ videos to train algorithms (among other things) with only check-the-box “consent.” But that’s not enough to ensure that users are really in control of what happens to their information. And in the Amazon complaint, the FTC says Amazon undermined parents’ rights under the Children’s Online Privacy Protection Act (COPPA) Rule to delete their children’s voice recordings. Parents have the right under the COPPA Rule to decide what data about their children is stored by a company, and what data is deleted. The upshot is clear: Any company that undermines consumer control of their data can face FTC enforcement action.

Place special safeguards on human review and employee access to sensitive data

AI developers often rely on human reviewers to tag and annotate the data that trains machine learning algorithms. But do consumers know when their data is under review? In its complaint, the FTC says Ring hid this review from its customers and let reviewers abuse their access to consumers’ videos. As a result, Ring’s customers – who bought Ring’s products for more security – ended up being the target of Ring employees’ spying and surveillance. The Amazon complaint also says that Amazon didn’t use appropriate controls to limit which employees could access Alexa users’ voice recordings, so thousands of employees had access to sensitive voice recordings that they didn’t need. Companies relying on human review are on notice that safeguards for sensitive data, including strict access controls, can’t be an afterthought. They should be the first step.

The FTC protects biometric data

Last month, the FTC issued a policy statement on the protection of biometric data. That statement explains that biometric data – whether fingerprints and iris scans or videos and voice recordings – deserves the utmost protection because of its inherent sensitivity and the potential for bias, discrimination, and other harmful uses. The FTC’s settlements with Amazon and Ring underscore that when the FTC says protecting biometric data is a priority, it means what it says – and the Commission will back up that policy with enforcement action.

The FTC uses every tool available to protect kids’ privacy

After a series of enforcement actions about kids’ and teen privacy (think MicrosoftEpic GamesEdmodoWeight Watchers (Kurbo), and Chegg), it should be clear that protecting kids is a top FTC priority. That’s especially true at the intersection of AI and kid and teen privacy. In the Amazon complaint, the FTC says Amazon was keeping kids’ voice recordings (both audio files and transcripts) permanently and undermining parents’ deletion rights. According to the complaint, Amazon could then use that data for natural language processing. In the Ring complaint, the FTC describes Ring’s cavalier approach to privacy and security, notwithstanding the fact that its cameras were marketed to watch over kids’ bedrooms. The FTC’s response? No dice. The FTC will use every available tool – including the COPPA Rule and the FTC Act’s prohibitions on deceptive and unfair practices – to protect kids’ privacy.

Want to keep your algorithms and data products? Get the data lawfully

With Ring and Alexa, as well as KurboCambridge Analytica, and Everalbum, the FTC has obtained numerous orders requiring companies to delete data and delete or refrain from generating data products,  like algorithms, models, and other tools derived from ill-gotten data. These actions make clear that there are no free passes for data abuse. If you illegally obtain or misuse consumer data, you may well pay with your data product.

PLEASE NOTE: Psychology Clarification

The following specific modalities within the practice of psychology are restricted to psychologists appropriately trained in the use of such modalities:

  • Diagnosis: The diagnosis of mental, emotional, or brain disorders and related behaviors.
  • Psychoanalysis: Psychoanalysis is a type of therapy that focuses on helping individuals to understand and resolve unconscious conflicts.
  • Hypnosis: Hypnosis is a state of trance in which individuals are more susceptible to suggestion. It can be used to treat a variety of conditions, including anxiety, depression, and pain.
  • Biofeedback: Biofeedback is a type of therapy that teaches individuals to control their bodily functions, such as heart rate and blood pressure. It can be used to treat a variety of conditions, including stress, anxiety, and pain.
  • Behavioral analysis: Behavioral analysis is a type of therapy that focuses on changing individuals’ behaviors. It is often used to treat conditions such as autism and ADHD.
    Neuropsychology: Neuropsychology is a type of psychology that focuses on the relationship between the brain and behavior. It is often used to assess and treat cognitive impairments caused by brain injuries or diseases.

SCARS and the members of the SCARS Team do not engage in any of the above modalities in relationship to scam victims. SCARS is not a mental healthcare provider and recognizes the importance of professionalism and separation between its work and that of the licensed practice of psychology.

SCARS is an educational provider of generalized self-help information that individuals can use for their own benefit to achieve their own goals related to emotional trauma. SCARS recommends that all scam victims see professional counselors or therapists to help them determine the suitability of any specific information or practices that may help them.

SCARS cannot diagnose or treat any individuals, nor can it state the effectiveness of any educational information that it may provide, regardless of its experience in interacting with traumatized scam victims over time. All information that SCARS provides is purely for general educational purposes to help scam victims become aware of and better understand the topics and to be able to dialog with their counselors or therapists.

It is important that all readers understand these distinctions and that they apply the information that SCARS may publish at their own risk, and should do so only after consulting a licensed psychologist or mental healthcare provider.

Opinions

The opinions of the author are not necessarily those of the Society of Citizens Against Relationship Scams Inc. The author is solely responsible for the content of their work. SCARS is protected under the Communications Decency Act (CDA) section 230 from liability.

Disclaimer:

SCARS IS A DIGITAL PUBLISHER AND DOES NOT OFFER HEALTH OR MEDICAL ADVICE, LEGAL ADVICE, FINANCIAL ADVICE, OR SERVICES THAT SCARS IS NOT LICENSED OR REGISTERED TO PERFORM.

IF YOU’RE FACING A MEDICAL EMERGENCY, CALL YOUR LOCAL EMERGENCY SERVICES IMMEDIATELY, OR VISIT THE NEAREST EMERGENCY ROOM OR URGENT CARE CENTER. YOU SHOULD CONSULT YOUR HEALTHCARE PROVIDER BEFORE FOLLOWING ANY MEDICALLY RELATED INFORMATION PRESENTED ON OUR PAGES.

ALWAYS CONSULT A LICENSED ATTORNEY FOR ANY ADVICE REGARDING LEGAL MATTERS.

A LICENSED FINANCIAL OR TAX PROFESSIONAL SHOULD BE CONSULTED BEFORE ACTING ON ANY INFORMATION RELATING TO YOUR PERSONAL FINANCES OR TAX-RELATED ISSUES AND INFORMATION.

SCARS IS NOT A PRIVATE INVESTIGATOR – WE DO NOT PROVIDE INVESTIGATIVE SERVICES FOR INDIVIDUALS OR BUSINESSES. ANY INVESTIGATIONS THAT SCARS MAY PERFORM IS NOT A SERVICE PROVIDED TO THIRD-PARTIES. INFORMATION REPORTED TO SCARS MAY BE FORWARDED TO LAW ENFORCEMENT AS SCARS SEE FIT AND APPROPRIATE.

This content and other material contained on the website, apps, newsletter, and products (“Content”), is general in nature and for informational purposes only and does not constitute medical, legal, or financial advice; the Content is not intended to be a substitute for licensed or regulated professional advice. Always consult your doctor or other qualified healthcare provider, lawyer, financial, or tax professional with any questions you may have regarding the educational information contained herein. SCARS makes no guarantees about the efficacy of information described on or in SCARS’ Content. The information contained is subject to change and is not intended to cover all possible situations or effects. SCARS does not recommend or endorse any specific professional or care provider, product, service, or other information that may be mentioned in SCARS’ websites, apps, and Content unless explicitly identified as such.

The disclaimers herein are provided on this page for ease of reference. These disclaimers supplement and are a part of SCARS’ website’s Terms of Use

Legal Notices: 

All original content is Copyright © 1991 – 2023 Society of Citizens Against Relationship Scams Inc. (Registered D.B.A SCARS) All Rights Reserved Worldwide & Webwide. Third-party copyrights acknowledge.

U.S. State of Florida Registration Nonprofit (Not for Profit) #N20000011978 [SCARS DBA Registered #G20000137918] – Learn more at www.AgainstScams.org

SCARS, SCARS|INTERNATIONAL, SCARS, SCARS|SUPPORT, SCARS, RSN, Romance Scams Now, SCARS|INTERNATION, SCARS|WORLDWIDE, SCARS|GLOBAL, SCARS, Society of Citizens Against Relationship Scams, Society of Citizens Against Romance Scams, SCARS|ANYSCAM, Project Anyscam, Anyscam, SCARS|GOFCH, GOFCH, SCARS|CHINA, SCARS|CDN, SCARS|UK, SCARS|LATINOAMERICA, SCARS|MEMBER, SCARS|VOLUNTEER, SCARS Cybercriminal Data Network, Cobalt Alert, Scam Victims Support Group, SCARS ANGELS, SCARS RANGERS, SCARS MARSHALLS, SCARS PARTNERS, are all trademarks of Society of Citizens Against Relationship Scams Inc., All Rights Reserved Worldwide

Contact the legal department for the Society of Citizens Against Relationship Scams Incorporated by email at legal@AgainstScams.org