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Amazon Liable for Billing Parents for Children’s Unauthorized In-App Charges

Amazon Liable for Billing Parents for Children’s Unauthorized In-App Charges

April 29, 2016

The Federal Trade Commission’s request was granted by a federal judge for summary judgment in the agency’s lawsuit against Amazon, Inc., for billing consumers for unauthorized in-app charges incurred by children.

The judge’s order in the case finds that Amazon received many complaints from consumers about surprise in-app charges incurred by children, citing the fact that the company’s disclosures about the possibility of in-app charges within otherwise “free” apps were not sufficient to inform consumers about the charges.

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“We are pleased the federal judge found Amazon liable for unfairly billing consumers for unauthorized in-app purchases by children,” said FTC Chairwoman Edith Ramirez. “We look forward to making a case for full refunds to consumers as a result of Amazon’s actions.”

The order calls for further representations from the FTC and Amazon regarding the precise amount of monetary relief Amazon owes consumers as a result of its unlawful practices. In addition, the order grants a partial summary judgment requested by Amazon regarding injunctive relief requested by the FTC in the case.

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The FTC’s case against Amazon was first filed in July, 2014. The FTC reached settlements with Apple, Inc. andGoogle, Inc. related to unauthorized in-app charges incurred by children requiring the companies to fully refund consumers for such charges, resulting in refunds to consumers totaling over $50 million.

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Original article published on the FTC website. Photo Credit: Gizmodo.