In a recent development, Amazon.com Inc (NASDAQ:AMZN) has been fined $35 million by France’s privacy watchdog for its intrusive employee monitoring system.
What Happened: The French Data Protection Authority, or CNIL, has imposed a fine of 32 million euros (approx. $35 million) on Amazon’s French warehouse business. The fine was levied for the company’s use of an “excessively intrusive system” to monitor employee performance and activities, reported the Associated Press.
The system, which allows managers at Amazon France Logistique to closely track employees, was found to violate the European Union’s strict privacy rules, known as the General Data Protection Regulation.
Amazon, however, has contested the CNIL’s findings, stating “We strongly disagree with the CNIL’s conclusions, which are factually incorrect, and we reserve the right to file an appeal.”
The company added, “Warehouse management systems are industry standard and are necessary for ensuring the safety, quality and efficiency of operations and to track the storage of inventory and processing of packages on time and in line with customer expectations.”
The CNIL’s investigation focused on the use of handheld barcode scanners by Amazon employees to track packages at various stages in the warehouse. The regulator criticized the system, known as a “stow machine gun,” for putting employees under “close surveillance” and “continuous pressure.”
Additionally, the CNIL reprimanded Amazon for retaining employee data for an extended period, stating that real-time data and weekly statistics were sufficient under EU privacy rules.
Why It Matters: This fine is the latest in a series of controversies surrounding Amazon’s employee management practices. In January, it was reported that the company was using a tactic known as “quiet firing” to encourage employees to leave voluntarily. This strategy involves creating work conditions that prompt employees to resign.
Earlier, in October, Amazon updated its office attendance guidelines, threatening termination for non-compliance. This move was met with backlash from employees and labor unions.
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