Tags: amazon | kids | in-app | purchases | refund

Kids' Amazon In-App Purchases Must Be Refunded to Parents

Image: Kids' Amazon In-App Purchases Must Be Refunded to Parents

A judge has ruled Amazon must refund parents for unauthorized in-app purchases made by kids. (Ken Wolter/Dreamstime.com)

By    |   Friday, 11 Nov 2016 03:17 PM

Amazon must refund parents for kids’ unauthorized in-app purchases, a federal judge ordered Thursday, giving the company a year to refund the money and rejecting the request for an upfront $26.5 million payout.

Amazon had requested to pay the money back via gift cards, but the judge denied the request.

In July of 2014, the FTC alleged "Amazon’s setup allowed children playing these kids’ games to spend unlimited amounts of money to pay for virtual items within the apps such as ‘coins,’ ‘stars,’ and ‘acorns’ without parental involvement."

These in-app purchase bills accumulated by kids amounted to about $86 million in unauthorized charges, Reuters reported.

Starting early next year, Amazon will have to create an online process by which it notifies parents they're eligible for a refund.

“[This new process removes] the uncertainty of the proper lump sum amount that the parties have vigorously disputed. Moreover, it accomplishes the goals of placing liability on Amazon and refunding eligible customers,” U.S. District Judge John Coughenour said, according to Reuters

Both Apple and Google improved security on in-app purchases in 2014 after the FTC settled similar cases against them.

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Amazon must refund parents for kids' unauthorized in-app purchases, a federal judge ordered Thursday, giving the company a year to refund the money and rejecting the request for an upfront $26.5 million payout.
amazon, kids, in-app, purchases, refund
188
2016-17-11
Friday, 11 Nov 2016 03:17 PM
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