Is Amazon tracking you through your phone?

A lawsuit says Amazon implants spy software on its customers' phones, tracks their movements and sells the data to third parties. Image (c) ConsumerAffairs

Lawsuit says it uses 'Speedtest by Ookla' to install its tracking code

Amazon.com is facing a lawsuit alleging that it secretly tracks consumers' movements through their cellphones and sells the collected data. The proposed class action lawsuit, filed in San Francisco federal court, claims that Amazon gains "backdoor access" to personal information by providing app developers with code known as Amazon Ads SDK.

This code, embedded in various apps, allegedly allows Amazon to collect vast amounts of geolocation data, including where consumers live, work, shop, and visit. The lawsuit contends that this data can reveal sensitive information about individuals, such as their religious affiliations, sexual orientations, and health concerns.

Felix Kolotinsky, the plaintiff in the case, claims that Amazon collected his personal information through the "Speedtest by Ookla" app on his phone. He alleges that Amazon's actions violate California laws against unauthorized computer access and seeks unspecified damages on behalf of millions of Californians.

“Amazon has effectively fingerprinted consumers and has correlated a vast amount of personal information about them entirely without consumers’ knowledge and consent,” the complaint said.

Amazon did not immediately respond to a request for comment. 

Similar to other cases

The lawsuit highlights growing concerns about companies profiting from personal data collected without consent. It follows a similar lawsuit filed by the state of Texas against Allstate, accusing the insurer of tracking drivers through their phones and using the data to adjust premiums or deny coverage.

In the Allstate case, Texas Attorney General Ken Paxton sued Allstate and its subsidiary, Arity, for unlawfully collecting, using, and selling data about the location and movement of Texans’ cell phones through secretly embedded software in mobile apps, such as Life360.

Allstate and other insurers then used the covertly obtained data to justify raising Texans’ insurance rates, the suit alleges.

“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” said Paxton. “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”

Allstate said its actions were legal. “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations,” Allstate said in a statement.

This case against Amazon raises important questions about privacy and data collection practices in the digital age. As consumers increasingly rely on smartphones and apps, the potential for unauthorized tracking and data exploitation becomes a significant concern.

The outcome of this lawsuit could have far-reaching implications for how companies collect and use personal data. It may lead to stricter regulations and greater transparency regarding data collection practices, potentially impacting the way businesses operate in the digital marketplace.