Amazon has denied a Federal Trade Commission request to restrict add-on purchases made within its mobile applications, the Wall Street Journal reports.

As part of the FTC's terms, Amazon would need to clearly warn users of real-money transactions within its applications, require password entry for in-app purchases, and overhaul its refund process to aid parents seeking recompense for unwanted purchases made by children. In a letter to the FTC this week, Amazon stated that it prefers to "defend our approach in court," rather than agreeing to change its terms and accept FTC-issued fines.

"When customers told us their kids had made purchases they didn't want, we refunded those purchases," Amazon associate general counsel Andrew DeVore said in the company's mailed response to the FTC. Refuting the need to change company policy, DeVore noted that Amazon currently implements "prominent notice of in-app purchasing, effective parental controls and real-time notice of every in-app purchase."

Apple issued $32.5 million in refunds to iTunes App Store customers earlier this year in response to a similar complaint from the FTC. The FTC has not yet responded to Amazon's latest statement.

[Image: Amazon / Engadget]

This article was originally published on Joystiq.