Amazon to refund parents over kids' in-app purchases, says FTC

More than $70 million in in-app purchases may be eligible for a refund, according to the FTC

Parents with children that ran up bills, sometimes huge, through in-app purchases stand to get some or all of that money back. Amazon could have to hand out more than $70 million in refunds to affected consumers, according to the U.S. Federal Trade Commission.

On Tuesday, both the FTC and Amazon agreed to end their legal battle over whether the U.S. company unlawfully charged its customer for the purchases.

A year ago, a court found that Amazon had.

The company's app store can be downloaded to Android devices and it runs on certain Kindle tablets. However, parents had complained that Amazon’s system had made it all too easy for their children to buy virtual items in the apps, without their consent.

Both the FTC and Amazon had filed appeals related to the case, but on Tuesday, they dropped them. That opens the way for the refund process to begin shortly, according to the FTC.  

Over $70 million in in-app charges made from 2011 to 2016 may be eligible for refunds, the U.S. regulator said.

Amazon didn’t immediately respond to a request for comment, so it’s unclear how the company will reimburse its customers. Amazon had taken a 30 percent cut from the in-app purchases, according to the FTC.  

Back in 2014, both Apple and Google also settled similar cases over in-app purchases with the FTC, which resulted in a combined $51 million in refunds to customers.

In Apple’s case, the company emailed and sent postcards to every customer who might have been affected. Apple eventually received 37,000 claims, and made refunds to them all.   

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

More online threats demand more protection.

Save up to $90! Great Deals on Norton 360 antivirus starting at just A$79.99 Get comprehensive protection with Norton 360 including Antivirus, secure VPN, a Password Manager, PC Cloud Backup, and more. All backed by 60-day Money Back Guarantee and 100% Virus Protection Promise.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?