The Federal Trade Commission (FTC) is taking action to redress privacy and security breaches at Ring, the home security camera company owned by Amazon, by issuing refunds totaling more than $5.6 million to consumers. 

This initiative stems from a complaint filed by the FTC against Ring for alleged negligence in safeguarding customer accounts, which led to unauthorized access by employees and contractors, as well as exploitation by hackers. This included, in one case, one employee surveilling intimate areas of female customers’ homes, such as bathrooms or bedrooms. 

“Ring’s disregard for privacy and security exposed consumers to spying and harassment,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The FTC’s order makes clear that putting profit over privacy doesn’t pay.”

Following a settlement with the FTC in 2023, Ring defended itself to customers in a statement: “We want our customers to know that the FTC complaint draws on matters that Ring promptly addressed on its own, well before the FTC began its inquiry; mischaracterizes our security practices; and ignores the many protections we have in place for our customers. While we disagree with the FTC’s allegations and deny violating the law, this settlement resolves this matter so we can focus on innovating on behalf of our customers.”

As part of the settlement, Ring agreed to financial compensation, the deletion of unlawfully obtained videos, and the implementation of robust privacy and security protocols to prevent future breaches. The FTC is utilizing the settlement funds to provide refunds to eligible Ring customers, with over 117,000 individuals set to receive payments via PayPal. 

Consumers who qualify for refunds are urged to accept their PayPal payments within 30 days to ensure timely processing. 

Sounds phishy? 

Before issuing payments, the federal agency sends an email directly from its official email address (subscribe@subscribe.ftc.gov) to notify payment recipients. Once payments are processed, PayPal sends a separate email to recipients, informing them about the refund transaction.

If receiving an email from the FTC about a refund via PayPal sets off your phishing scam alarm bells, you are not alone. Yet there are confirmations on social media that some have already received a refund. (At least two reports of $47.70 deposits into PayPal accounts were shared on Reddit.) 

If you are eligible for a refund but do not wish to create a PayPal account, the FTC offers a workaround: You can request a check instead by calling the administrator at 1-833-637-4884. Recipients, the agency told Fast Company, will receive either $150.00 or $47.70, depending on several factors, including the type of Ring device and when the consumer had the account.

For comprehensive information regarding FTC refund programs, individuals can visit ftc.gov/refunds and click on the respective case name.

This story has been updated with the FTC’s response to our inquiry.