FTC Sues Amazon Over In-App Purchases

Amazon said in June that it would fight the Federal Trade Commission if it tried to make it settle complaints from parents who claim they did not authorize purchases for their children on various apps in its store. Apple settled a lawsuit in January to the tune of $32.5 million, but Amazon wrote a letter to the FTC last month telling them that they would not settle because they have been making changes to how children have access to purchasing power within its store and the apps that appear in it.

The Federal Trade Commission asked the court in a lawsuit filed against the online retailer on Thursday to refund the money spent without parental authorization and to end the practice of allowing unlimited purchases without requiring a password or other mechanism to give parents control over their accounts.

The FTC said in its complaint that Amazon responded to complaints about unauthorized charges by requiring passwords to be used for large purchases starting in 2012. This was later expanded to all purchases in early 2013. But the FTC claims that once a password has been punched into the device, a purchase window remained open for up to an hour.

Amazon had no comment on this news, but it is unlikely that the company is shocked that the FTC has decided to take them to court…

Source: Reuters

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