Amazon will Refund In-App Purchase by kids, totally around $70 Million

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Following the end of a legal battle with the Federal Trade Commission (FTC), Amazon.com, Inc. (NASDAQ: AMZN) will start to refund in-app purchase made by kids between November 2011 and May 2016.

According to the FTC, the refund could be more than $70 million in the nearly five-year period. In 2014, the FTC sued Amazon for not implementing strong parental controls to prevent unauthorized in-app purchases by kids. After Amazon disputed the claims saying that they use effective controls, a federal judge ruled that Amazon was liable. 

Now, the FTC and Amazon will end the appeals to a ruling saying that Amazon that failed to get the permission of parents for the purchase by kid, which means that Amazon could start the process of refund. An Amazon’s spokesman declined to comment.

“This case demonstrates what should be a bedrock principle for all companies — you must get customers’ consent before you charge them,” said Thomas B. Pahl, the director of the FTC’s Bureau of Consumer Protection.

However, Amazon is not the only company to refund customer for unauthorized charges made by kids. Apple had a $32.5 million settlement with FTC three years ago, including refunds for unauthorized charges. In addition, Google also refunded at least $19 million for unauthorized in-app purchases in September 2014.

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