Amazon Agrees to $2.25 Million Settlement Over Fair Credit Reporting Act Allegations
The U.S. Department of Justice said Amazon agreed to pay $2.25 million and accept an injunction to resolve allegations that it violated the Fair Credit Reporting Act.
What are the key facts?
- 1$2.25 million settlement
- 2Involves the Fair Credit Reporting Act
- 3Concerns labor background-check procedures
What happened?
The U.S. Department of Justice announced that Amazon agreed to pay $2.25 million and accept an injunction to resolve a case involving alleged violations of the Fair Credit Reporting Act. The law covers procedural obligations that companies must fulfill when using consumer reports or background-check information.
The matter described in the announcement concerned Amazon’s employment-related background-check procedures. The allegations claimed that Amazon did not strictly complete legally required disclosure and authorization procedures during employment-related background checks. The case focused on the process for using background-check information and whether the relevant individuals received the required notice and authorization.
According to the announcement, Amazon addressed the alleged violations by agreeing to pay $2.25 million and accept an injunction. The U.S. Department of Justice and the Federal Trade Commission participated in the related enforcement arrangement. The settlement and injunction resolve the legal allegations listed in the announcement and require the relevant procedures to be handled in accordance with applicable law.
What does this mean for cross-border sellers?
The case again shows that disclosure, authorization, and review procedures can be key compliance areas when platform companies handle applicant or employee information. Do not treat third-party background checks as purely administrative; process gaps can create legal and cost risks. Highest-priority action: this week, check notice, authorization, and recordkeeping procedures when your company uses third-party personal-information services.