Amazon Faces Lawsuit Over Alleged Secret Collection and Sale of User Location Data

 

A new class action lawsuit accuses Amazon of secretly gathering and monetizing location data from millions of California residents without their consent. The legal complaint, filed in a U.S. District Court, alleges that Amazon used its Amazon Ads software development kit (SDK) to extract sensitive geolocation information from mobile apps. According to the lawsuit, plaintiff Felix Kolotinsky of San Mateo claims 

Amazon embedded its SDK into numerous mobile applications, allowing the company to collect precise, timestamped location details. Users were reportedly unaware that their movements were being tracked and stored. Kolotinsky states that his own data was accessed through the widely used “Speedtest by Ookla” app. The lawsuit contends that Amazon’s data collection practices could reveal personal details such as users’ home addresses, workplaces, shopping habits, and frequented locations. 

It also raises concerns that this data might expose sensitive aspects of users’ lives, including religious practices, medical visits, and sexual orientation. Furthermore, the complaint alleges that Amazon leveraged this information to build detailed consumer profiles for targeted advertising, violating California’s privacy and computer access laws. This case is part of a broader legal pushback against tech companies and data brokers accused of misusing location tracking technologies. 

In a similar instance, the state of Texas recently filed a lawsuit against Allstate, alleging the insurance company monitored drivers’ locations via mobile SDKs and sold the data to other insurers. Another legal challenge in 2024 targeted Twilio, claiming its SDK unlawfully harvested private user data. Amazon has faced multiple privacy-related controversies in recent years. In 2020, it terminated several employees for leaking customer data, including email addresses and phone numbers, to third parties. 

More recently, in June 2023, Amazon agreed to a $31 million settlement over privacy violations tied to its Alexa voice assistant and Ring doorbell products. That lawsuit accused the company of storing children’s voice recordings indefinitely and using them to refine its artificial intelligence, breaching federal child privacy laws. 

Amazon has not yet issued a response to the latest allegations. The lawsuit, Kolotinsky v. Amazon.com Inc., seeks compensation for affected California residents and calls for an end to the company’s alleged unauthorized data collection practices.