FTC Settlement Forces Ring to Overhaul Privacy After Camera Spy Scandal

When the Federal Trade Commission released its complaint on May 25, 2023, it laid bare a series of privacy violations at Ring LLC, the California‑based home‑security camera firm that Amazon.com Inc. bought in February 2018. The agency alleged that Ring let employees and contractors watch intimate video feeds from bedrooms and bathrooms, and that hackers could hijack accounts to harass children. Samuel Levine, director of the FTC’s Bureau of Consumer Protection, called the conduct "a stark reminder that profit‑over‑privacy doesn’t pay."

Background on Ring and Its Amazon Acquisition

Founded in 2012, Ring rose quickly by advertising its video‑doorbells and indoor cameras as a way to “see your home, away from home.” The company’s promise of "greater home security" attracted millions of households, especially after the 2018 purchase by Amazon, which integrated Ring into its smart‑home ecosystem. California became a hub for Ring’s research labs, yet the rapid scaling outpaced the development of robust security safeguards.

FTC Investigation Findings

The FTC’s probe, sparked by consumer complaints and a whistle‑blower tip, uncovered that Ring employees could access any live or recorded video without a justified reason. One employee admitted to watching thousands of recordings of female users in private spaces over several months before a coworker reported the behavior. Because Ring lacked basic audit logs, the agency could not determine how many other staff members may have abused access.

Beyond internal misuse, the investigation revealed glaring technical gaps: the company did not require multi‑factor authentication (MFA) for customer accounts, leaving them vulnerable to credential‑stuffing and brute‑force attacks. Hackers exploited these loopholes to gain control of cameras, stream footage live, and even send lewd messages to teenagers through two‑way audio.

Impact on Consumers and Children

Families reported terrifying episodes where strangers spoke to children through a Ring camera, or where the device was turned on to livestream a bedroom while the homeowner was away. In one documented case, a hacker live‑streamed a private video for over an hour before the account was disabled. The FTC’s consumer alert, authored by Veda Lowthorp, highlighted that Ring marketed its indoor cameras with images of children’s rooms, creating a false sense of "peace of mind" while the underlying security was woefully inadequate.

Settlement Terms and New Safeguards

Under the proposed settlement, Ring must implement a sweeping privacy and security program that includes:

• Mandatory multi‑factor authentication for all employee and customer accounts.
• Real‑time monitoring and logging of any human review of video footage.
• Independent audits every six months to verify compliance.
• Deletion of all data, models, and algorithms derived from unlawfully reviewed videos.
• A $5.8 million cash payment to affected consumers.

The order also bars Ring from using customer video for algorithm training without explicit, opt‑in consent.

Wider Industry Implications

This enforcement action signals that regulators are cracking down on the "Internet‑of‑Things" (IoT) sector’s complacency about data protection. Experts note that Ring’s case may serve as a precedent for other smart‑home devices—such as video doorbells from Google’s Nest or security cameras from Apple—that collect biometric data. "Companies can’t hide behind the novelty of connected appliances," said cybersecurity analyst Maya Patel of the Digital Rights Center. "Consumers expect their homes to be safe, not a surveillance playground for employees or hackers."

What Comes Next for Ring?

Ring has pledged to roll out the new security features over the next 12 months, with a public dashboard reporting compliance milestones. The FTC will retain jurisdiction to enforce the consent and data‑deletion requirements, and a federal judge must approve the settlement before it takes effect. Meanwhile, consumer advocacy groups are urging lawmakers to draft federal standards for IoT privacy, arguing that voluntary measures have proven insufficient.