Controversies

Fair Credit Reporting Act settlement

The Department of Justice announced a $2.25 million civil penalty and injunction resolving allegations that Amazon did not provide certain identity-theft victims with requested transaction records within the required time.

Amazon Alexa Plus bug causes Echo speakers to repeatedly sing 'lalala'

Issue disclosure

In October 2026, an Alexa Plus bug caused some Amazon Echo smart speakers to repeatedly say or sing 'lalala' for minutes at a time, often mid-conversation. When asked about the behavior, the assistant apparently was unaware of it. Users reported the issue on Reddit repeatedly over recent weeks across multiple Echo speaker models. Amazon said it was aware of the issue, describing it as a bug affecting a small number of Alexa Plus users, and that a fix was in the works.

An Alexa Plus bug has caused some Amazon Echo smart speakers to repeatedly say or sing 'lalala' for minutes at a time, often mid-conversation, with the assistant apparently unaware of the behavior when asked. Users have reported the issue on Reddit repeatedly over recent weeks across multiple Echo speaker models. Amazon said it is aware of the issue, describing it as a bug affecting a small number of Alexa Plus users, and that a fix is in the works.

Apple and Amazon face revived UK consumer lawsuit over product sales

Lawsuit filed

Reuters reported that Apple and Amazon are facing a revived consumer lawsuit in the United Kingdom over product sales. The event is recorded as a controversy note for Amazon. The available source summary does not provide further details about the legal claims, the products involved, the court's reasoning, or the outcome. The event date is September 28, 2026. The report identifies the matter as a revived UK consumer lawsuit concerning product sales. No additional people, amounts, or rulings are included in the source summary. The case is described only at that level, and the report is attributed to Reuters.

Amazon worker alleges assault on work trip, says company refused transfer

Issue disclosure

An Amazon worker alleges being assaulted while on a work trip and says the company refused a transfer request. The allegation was reported by Human Resources Director. The event is dated 2026-10-09.

Amazon publishes blog urging support for AI data centers amid community backlash

Company response

On October 2, 2026, Amazon published a blog post by AWS CEO Matt Garman addressing public concerns about AI data centers' impact on jobs, power demands, and the environment. The post warned that more than 100 data center moratoriums under consideration across the US could cause lasting harm to the US economy and national security. Amazon outlined a 'Data Center Commitment' covering job creation, preventing increases to local energy rates, and a pledge to invest more than $1 billion to support communities neighboring its data centers. Amazon also said it no longer uses nondisclosure agreements with government agencies, following scrutiny from Democratic lawmaker Jamie Raskin regarding secret deals with local officials.

On October 2, 2026, Amazon published a more than 3,000-word blog by AWS CEO Matt Garman pushing back on public concerns about the impact of AI data centers on jobs, power demands, and the environment, warning that more than 100 data center moratoriums under consideration across the US could cause lasting harm to the US economy and national security. The memorandum codifies a 'Data Center Commitment' covering job creation, preventing increases to local energy rates, and a pledge to invest more than $1 billion to support communities neighboring its data centers. Amazon also said it no longer uses nondisclosure agreements with government agencies, after Democratic lawmaker Jamie Raskin probed tech companies about secret deals with local officials.

Stated objective. Calling for public support of AI data center projects, warning that blocking them risks irreparable harm to the US economy and national security ('our nation can't afford to lose' the race for AI dominance).

Sen. Warren and Senate Democrats send letters to Meta, Google, Amazon and Microsoft seeking information on AI tax subsidies

Investigation

Sen. Elizabeth Warren, D-Mass., joined by Democratic Sens. Tina Smith and Jeff Merkley, sent letters Sunday night to the CEOs of Meta, Google, Amazon and Microsoft seeking information on tax deductions the companies claimed for AI and data center development under the 2025 'one big beautiful bill' act and on their lobbying efforts ahead of the bill's passage. The letters cite falling corporate tax payments even as revenues rise, and request answers by Oct. 12. Spokespeople for all four companies did not immediately respond to a request for comment.

Stated objective. Seek information on tax deductions claimed related to AI and data center development and on lobbying efforts in the lead-up to the passage of the 2025 'one big beautiful bill' act, with answers requested by Oct. 12.

Twitch streamer sues Amazon and Twitch over alleged AI training use of streams

Lawsuit filed

Twitch streamer Warren Pandiscia filed a lawsuit in the U.S. District Court for the Northern District of California against Twitch and its parent company Amazon. The suit alleges that the companies used his streams to develop AI products without permission or licensing fees. According to the filing, data collection allegedly occurred for at least two years before Twitch updated its terms of service and added an AI opt-out option.

Amazon fined Rs 1 lakh by CCPA over unauthorized 'Shri Ram Mandir Ayodhya Prasad' listings

Fine or penalty

India's Central Consumer Protection Authority (CCPA) fined Amazon Rs 1 lakh for allowing ordinary sweets to be sold online as 'Shri Ram Mandir Ayodhya Prasad' without authorization from the Shri Ram Janmabhoomi Teerth Kshetra Trust. The CCPA rejected Amazon's claim that it was merely an intermediary and directed Amazon to deposit the penalty within 15 days, and extended directions covering listings associated with 10 major religious institutions.

Amazon fined $2.25 million to resolve DOJ identity theft records case

Fine or penalty

The Justice Department said Amazon.com would pay a $2.25 million civil penalty to resolve allegations that it violated the Fair Credit Reporting Act by failing to provide identity theft victims requested transaction records involving potential perpetrators within 30 days. A federal judge entered a stipulated order imposing the penalty and requiring Amazon to provide those records free of charge within 30 days of a request and to post a notice on its website explaining how victims can request them.

Consumers sue Amazon over seafood sustainability labels

Lawsuit filed

Consumers filed a proposed class-action lawsuit against Amazon, alleging that environmental labels on seafood sold through its platform and stores misled shoppers. The allegations have not been proven in court.

San Diego man sues Amazon over tabletop fire pit burns

Lawsuit filed

A San Diego man sued Amazon and two companies involved in manufacturing a tabletop fire pit after suffering severe burns. His attorney alleges that Amazon bears some responsibility because its website made the product available to consumers and Amazon processed the transaction and profited from it.

Senate report criticizes data-center operators’ grid-cost positions

Issue disclosure

A report by Democratic U.S. senators stated that companies accepted paying for infrastructure dedicated to their data-center sites but opposed requirements to cover the full cost of wider grid improvements tied to their facilities. The report did not specify which companies took each position. The source article does not identify the companies involved or provide further details on the positions described.

A report by Democratic U.S. senators said companies accepted paying for infrastructure dedicated to their data-center sites but opposed requirements to cover the full cost of wider grid improvements tied to their facilities. The article does not specify which companies took each position.

Local opposition to data center development

Public backlash

In 2026, voters in multiple US jurisdictions were set to consider measures that would restrict data center development. In Sunbury, Ohio, a proposed measure could derail Amazon's proposed data center development. The event was reported as part of a broader backlash against the AI data center boom at the US ballot box.

Voters in multiple US jurisdictions are set to consider measures that would restrict data center development. In Sunbury, Ohio, a proposed measure could derail Amazon’s proposed data center development.

Amazon blocks Meta's Muse from accessing Amazon shopping

Issue disclosure

GeekWire reported on September 20 that users attempting to connect Meta's Muse to Amazon shopping began seeing notices stating that continued access by unauthorized AI agents violates the platform's terms of service. Amazon confirmed it had blocked Muse and said it had earlier asked Meta to exclude the shopping site from the service. Amazon also objected to agents not identifying themselves and to the handling of account credentials. Meta's published design states that credentials enter secure storage that Muse itself cannot see.

GeekWire reported on September 20 that users trying to connect Meta's Muse to Amazon shopping began seeing notices that continued access by unauthorized AI agents violates the platform's terms of service. Amazon confirmed it had blocked Muse and said it had earlier asked Meta to exclude the shopping site from the service; Amazon also objected to agents not identifying themselves and to the handling of account credentials, while Meta's published design states that credentials enter secure storage that Muse itself cannot see.

Prime enrollment and cancellation settlement

The FTC announced a $2.5 billion settlement resolving allegations that Amazon enrolled consumers in Prime without adequate consent and made cancellation difficult. The allegations were resolved through a court-entered settlement rather than a trial judgment on every disputed claim.

Amazon challenges CPSC recall order

Amazon sued the CPSC over an order involving more than 400,000 products sold by third-party vendors through Fulfilled by Amazon. The dispute concerned whether Amazon was legally a distributor responsible for recalls.

Warehouse ergonomic and safety scrutiny

OSHA and the Department of Labor pursued enforcement concerning ergonomic hazards and musculoskeletal injury risks at Amazon facilities. A corporate-wide settlement required additional ergonomic measures.

FTC antitrust lawsuit

The FTC and 17 state attorneys general alleged that Amazon used anti-discounting measures, fulfillment requirements, search and advertising practices, and seller fees to maintain monopoly power in online retail and marketplace services.

D.C. court dismisses antitrust lawsuit against Amazon

Ruling

A D.C. Superior Court judge dismissed the District of Columbia's lawsuit against Amazon on the basis of Amazon's motion. The D.C. Attorney General's office said it was considering an appeal.

Report reveals obstacles in Amazon Prime cancellation process

Issue disclosure

A report citing leaked internal documents said Amazon implemented Project Iliad to make it harder for users to cancel Prime memberships. Amazon’s spokesperson said Prime registration and cancellation were simple and transparent.

Stated objective. Reduce Prime membership churn