The move comes after security firm Kryptowire demonstrated last week how software in Blu's phones collected data and sent it to servers in China without alerting people.
Blu previously agreed that there was a third-party app on its smartphones which collected information about text messages, contacts, and call logs. However, researchers at KryptoWire last week once again revealed that Adups' software is still sending data from the Blu Grand M smartphone to the company's server in China. As those concerns have appeared once again, Amazon has made a decision to stop selling Blu smartphones.
Amazon just put budget phone maker Blu in the penalty box. Adups has called Kryptowire's latest presentation "slander" and has said that the same firm approved of revised firmware on the devices it had tested in November. Sales are suspended for "potential security issue" according to CNET. Blu adds the data now being collected is "standard for OTA functionality" and "does not affect any user's privacy or security".
BLU is denying any wrongdoing, saying that it stopped bundling Adups software in 2016, but some older devices still use have it. Blu said it took the additional step of switching from the Adups OTA app on future devices to Google's GOTA. Kryptowire later provided the findings to Amazon.