Thursday April 06, 2017

Amazon Will Refund $70 Million Worth of App Purchases Made by Kids

I was going to ask whether Amazon was truly in the wrong here and how parents should actually, you know, parent, but it sounds like the blame is justified. The FTC complaint, which was originally filed in 2014, would suggest that no password or other kind of consent was required for charges in kids’ apps. Amazon has finally given up and agreed to pay back for this oversight.

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Last year, Amazon was found guilty of illegally billing some of its customers. Specifically, the issue was that many parents had been charged for purchases made, without their consent, by their children. This week, the company has agreed to end its efforts to appeal that ruling and give those parents their money back. The amountآ—more than $70 millionآ—covers in-app purchases made by kids between November 2011 and May 2016. A federal judge found Amazon guilty of failing to warn customers that in-app charges could arise after an initial free download of a game. Similar actions against Google and Apple in recent years also resulted in large refundsآ—$32 million and $19 million respectively.