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FTC sues Amazon over in-app purchase practices

Danny Cowan, @db_cowan
July 10, 2014
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The U.S. Federal Trade Commission has sued online retailer Amazon for refusing to change its framework for purchases made within its hosted mobile apps, according to a Reuters report.

The lawsuit is an expected result of Amazon's denial of FTC-issued requests to change its in-app purchase policies. To meet FTC guidelines, Amazon would need to add another layer of password protection and overhaul its refund policies in order to curb in-app purchases made by children without parental permission. In a recent letter to the FTC, Amazon noted that it prefers to "defend our approach in court," rather than change its policies.

The FTC's lawsuit seeks refunds for affected customers and a ban on unlimited purchases within Amazon apps. Apple issued more than $32.5 million in refunds to App Store customers following a similar FTC complaint earlier this year.

[Image: Amazon]







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