France’s data protection authority uncovered Amazon’s violation of workers’ rights and imposed a substantial €32 million fine on the tech giant. The penalty stems from Amazon France Logistique’s implementation of an overly intrusive system for monitoring employee activity and performance, as stated by the French data protection agency CNIL.
This verdict follows an investigation initiated in 2019 prompted by employee complaints, which garnered media attention. CNIL’s decision to fine the company €32 million represents approximately 3% of Amazon’s annual revenue, which amounted to €1.1 billion in 2021. Notably, Amazon France Logistique employs some 20,000 persons across France.
The illegal action
The regulatory body deemed the practice employed by Amazon’s French subsidiary unlawful. According to the watchdog, Amazon implemented scanners for its employees to track and record the duration required to complete specific tasks in real time. As a result, employees under surveillance by the scanners found themselves potentially obligated to justify their breaks in particular circumstances. Additionally, another form of monitoring focused on the time allocated to workers for quality-checking articles, with a target set at a minimum of 1.25 seconds per check. If this timeframe was not met, Amazon deemed the check inadequate.
Moreover, the regulatory body found Amazon’s practices to violate the EU’s general data protection regulation (GDPR), which mandates strict guidelines for companies regarding obtaining consent for the use of personal information. The CNIL further criticized Amazon for retaining all data collected by the system, encompassing employees and temporary workers, for 31 days, deeming this duration excessive.
Amazon retains the right to lodge an appeal
In response to the ruling, Amazon released a statement expressing strong disagreement with the CNIL’s findings, which it labelled as factually inaccurate. The company asserted its intention to appeal the decision, emphasizing its belief that the use of warehouse management systems adhered to standard industry practices and complied with relevant European and French regulations.
Amazon highlighted its constructive engagement with the CNIL throughout the investigative process, aiming to address any inquiries raised by the regulatory body. Renowned for its exacting standards in e-commerce, Amazon is synonymous with efficiency, exemplified by its expectation that workers deliver packages within a 24-hour timeframe.
Amazon asserts that achieving such high levels of efficiency would be unattainable without the utilization of scanners, emphasizing the necessity of seamlessly managing tens of thousands of items while upholding stringent quality standards. This incident is not the first time Amazon has encountered significant criticism in France. In 2020, the tech giant temporarily halted all operations in the country following a French court ruling that it had not adequately safeguarded its workers against the COVID-19 virus.
The UK case
Similar scrutiny has been directed towards Amazon’s warehouse systems in the UK in the past. Amazon’s Europe policy chief, Brian Palmer, testified before a parliamentary select committee in November 2022, disclosing that employees could face termination if they accrued three productivity flags on the system. However, Amazon later clarified that Palmer’s statements were not entirely accurate.
A subsequent report released by the Business, Energy, and Industrial Strategy Committee expressed apprehension regarding the use of surveillance technology to establish performance metrics and monitor employee productivity. The report highlighted evidence suggesting that Amazon’s surveillance practices were fostering feelings of distrust, fostering micromanagement, and, in some instances, resulting in disciplinary actions against workers. The committee conveyed its concerns to Amazon, cautioning that implementing such technology could place undue stress on its workforce.