Amazon Won’t to Settle with FTC Over In-App Charges

Posted by at 11:37 am on July 2, 2014

Amazon has made clear to the Federal Trade Commission that it will not settle with the government over claims it didn’t adequately prevent customers from making in-app purchases.

Consumers complained that children were able to easily make unwanted in-app purchases from Amazon’s Appstore. Amazon has operated its own Appstore for Android and Fire OS apps since 2011. The FTC has threatened Amazon with litigation if it fails to sign a consent decree similar to the one signed by Apple earlier this year. Apple settled with the FTC for $32.5 million in order to avoid any courtroom drama.

Amazon believes it responded quickly and adequately to the issue at hand and shouldn’t be beholden to government action. The company said in a letter to the FTC that it will defend itself in court. The FTC argues that Amazon needs to require passwords for in-app purchases, make warnings more prominent, and make it easier for customers to receive refunds.

Amazon has already provided some refunds. The FTC has yet to file formal charges.

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