Amazon sued for easy app purchases by kids

Written By Unknown on Jumat, 11 Juli 2014 | 18.18

Kids have been spending millions on mobile apps without their parents' permission — and Amazon CEO Jeff Bezos is going to court to defend their right to do it.

The Federal Trade Commission sued Amazon Thursday, claiming the online giant makes it too easy for children to make unauthorized in-app purchases on the Kindle.

Some video-game apps, for example, allow virtual items such as weapons or extra lives for characters to be purchased by simply closing a pop-up window.

As a result, parents have been surprised with ballooning bills, with confusing and sometimes dead-end procedures for getting refunds, regulators claim.

The lawsuit, which demands that Amazon beef up password requirements for in-app purchases, came after Bezos thumbed his nose at an FTC settlement last week.

Amazon argued that it had already refunded money to parents who had complained.

When Amazon first introduced in-app charges in 2011, it didn't require a password. That changed in 2012, when it required a password — but only for charges over $20.

In 2013, the company updated password protection again, but in a way that allowed windows of time where children could still make purchases, according to the FTC complaint.

The FTC settled with Apple for $32.5 million over a similar matter in January.


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