This story began in 2014 with e-commerce giant Amazon and Federal Trade Commission as main protagonists and smartphone owners using Amazon app and their kids as an integral supporting cast. The story ends now on a happy note for FTC while Amazon has found itself caught in a web of $70 million refund which will be going to the supporting cast, that is, the parents.
Well, the legal battle between Amazon and US government’s FTC began in 2014 over Amazon allowing unauthorized in-app purchases. Due to this, parents had to pump in huge amounts of money for their kids’ in-app purchases which the later could easily resort to without parents approval.
This long legal battle has ended now with FTC revealing that both the parties have agreed to end their court appeals. But not without a victory for FTC and monetary gain for parents. FTC revealed that Amazon will refund over $70 million to parents for all the in-app charges made by kids between November 2011 and May 2016.
Currently, details about the refund program, as in when and how it will be reimbursed, are missing. We expect these to surface in the near future. Amazon is not the only company to land itself in a soup over in-app purchases. Apple and Google have faced a similar music in the past with both agreeing to pay back over $32 million and $19 million to App Store and Play Store customers respectively.