The Seattle Times has an interesting story about how an Amazon shareholder named Stephen Nelson has launched a lawsuit aimed at the company's top leadership, challenging what he calls Amazon's "astronomical misuse" of customer data.
Here's how the Times frames the story:
"Taking a new approach to bringing attention to how Amazon uses individuals’ data, a shareholder is suing Jeff Bezos, Andy Jassy and 17 other Amazon leaders he claims knowingly allowed the company to violate state laws.
"Amazon has already come under fire for how its uses biometric data, things like fingerprints and facial images. It’s been accused of collecting and using individuals’ images without their consent as well as violating state laws that prohibit companies from profiting off individuals’ biometric data.
"Usually, legal actions are targeting the company. This time, shareholder Stephen Nelson’s lawsuit is aimed at Amazon’s top decision makers, on behalf of the company itself.
"The group of defendants – which includes executives like founder and Executive Chairman Bezos; CEO Jassy; Chief Financial Officer Brian Olsavsky; and General Counsel David Zapolsky, as well as all 11 members of the board of directors – knowingly allowed Amazon to make false statements about its use of biometric data, Nelson alleges in the lawsuit filed in a U.S. District Court in Seattle in April. Company higher-ups, his attorneys claim, 'made a conscious choice to turn a blind eye to Amazon’s conduct.'
"Amazon executives and board members 'caused substantial financial and reputational harm to Amazon,' the lawsuit reads.
"Amazon did not return requests for comment on the lawsuit."
- KC's View:
-
This could be a nuisance suit. Or it could be completely legitimate and based on actual behaviors.
I do know one thing, though. I can't wait for the discovery phase of the suit.
Though it strikes me as a pretty good bet that Amazon will do everything it can to avoid and/or delay getting to that point.
