Report: Amazon faces FTC suit over kids’ in-app purchases

Seattle – The Federal Trade Commission (FTC) has reportedly drafted a complaint against Amazon.com regarding what it says have been millions of dollars in unauthorized in-app purchases by children using Amazon devices. According to Reuters, the FTC wants to Amazon to make refunds of unauthorized child purchases of digital goods and services within existing apps downloaded by their parents, as well as compensate the FTC for court costs.



Amazon, which has been in negotiations with the FTC on the issue, changed its policies on how in-app purchases are processed in June 2014. The retailer has also said that its refund policy for in-app purchases is clear, but many consumers have complained that it is difficult and confusing. Apple settled a similar complaint with the FTC for $32.5 million in January 2014; Amazon says its policies already meet or exceed the policies Apple adopted as part of that settlement.