Friday, July 11, 2014

FTC: Amazon Allowed Kids to Spend Millions of Parents' Money For Apps

Posted By on Fri, Jul 11, 2014 at 8:53 AM


After targeting Apple for allowing kids to run up charges on their parents' credit cards purchasing apps, the Federal Trade Commission is now suing Amazon for allowing the same thing.

In a compliant filed in a U.S. court, the FTC wants a judge to order to refund parents for unauthorized purchases made by their children. The FTC claims it has received complaints from thousands of parents about transactions amounting to millions of dollars.

In January, Apple settled a similar claim with the FTC. Apple agreed to refund at least $32.5 million to customers as part of the settlement.

And now, Jessica Rich, director of the FTC's Consumer Protection Bureau, says she has proof that even Amazon employees raised internal concerns about in-app purchases by children years before the company addressed the matter. While Amazon changed some of its policies, it still doesn't ban in-app charges without a parent's consent. Additionally, keeps 30 percent of all in-app charges. Amazon's official policy on in-app purchases says it doesn't give refunds.

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