Amazon Downplayed Privacy Litigation Risks, Investors Say

By Hailey Konnath (April 26, 2022, 11:46 PM EDT) -- Amazon's top brass has misled investors as to the e-commerce giant's compliance with the Illinois Biometric Information Privacy Act as well as the substantial litigation risks associated with its lackluster compliance, according to a stockholder derivative suit filed Tuesday in Washington federal court.

Suing on behalf of Amazon, Georgia-based investor Stephen Nelson pointed to 14 proposed class actions Amazon is facing under the Illinois law, which requires informed consent and certain disclosures before the collection, use and storage of biometric information, like fingerprints. Those actions are the "direct result of defendants' unlawful course of conduct," the suit claimed.

"Due to the...

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