The FTC is now seeking refunds for the parents who were charged.
Online giant, Amazon is being sued by the US Federal Trade Commission for allegedly allowing millions of dollars of unauthorized in-app purchases by children.
The FTC is now seeking refunds for the parents who were charged.
"Amazon’s in-app system allowed children to incur unlimited charges on their parents’ accounts without permission,” said FTC chairwoman, Edith Ramirez.
The complaint alleges that when Amazon introduced in-app charges to the Amazon Appstore in November 2011, there were no password requirements of any kind on in-app charges, including in kids’ games.
"Even Amazon’s own employees recognised the serious problem its process created,” continued Ramirez. “We are seeking refunds for affected parents and a court order to ensure that Amazon gets parents’ consent for in-app purchases.”
Amazon has resisted a settlement offer from the FTC, and wrote a letter earlier this month explaining it would not accept tighter controls, reports BBC.
In January, Apple settled with the FTC over similar charges.
In response to the allegations, an Amazon spokesperson cited the letter the firm sent to the FTC on July 1st, announcing it was “deeply disappointed” by the FTC’s demands.
"The unwillingness to depart from the precedent it set with Apple despite our very different facts leaves us no choice but to defend our approach in court,” wrote Amazon.
