Amazon Faces FTC Lawsuit After Rejecting In-App Purchases Settlement

Paul Lilly

A dispute over unauthorized in-app purchases made by children

Amazon had a chance to settle with the U.S. Federal Trade Commission out of court over allegations that it let children make millions of dollars worth of unauthorized in-app purchases, but apparently the offer wasn't too good to refuse. Having rejected the settlement, the FTC is now suing Amazon for an undisclosed sum of money , and also to force the e-commerce giant to make some changes to such purchases.

According to a report in The Wall Street Journal , the FTC wants Amazon to do a better job notifying customers of in-app purchases. It also wants Amazon to require passwords for in-app purchases, and to make refunds easier to obtain. The FTC says Amazon didn't start requiring informed consent for such purchases until June.

"We are seeking refunds for affected parents and a court order to ensure that Amazon gets parents' conset for in-app purchases," said FTC Chairwoman Edith Ramirez.

Amazon has so far resisted the FTC's demand, telling the agency on July 1 that it wouldn't make the requested changes. According to Amazon, its practices are lawflul and "already meet or exceed the requirements of the Apple consent order."

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