Amazon to refund nearly $70 million to Parents for In-app Purchase

Children who did Amazon purchases without prior permission of their parents their money will be refunded, announced by Federal Trade commission on Tuesday and the amount to be refunded is nearly around Rs. 451 crores.

Federal regulators filed a lawsuit in July 2014 saying Amazon charged  millions of dollars of u payments for in-app purchases, virtual items offered within mobile games such as Candy Crush Saga, The Washington Post reported.

In an April 2016 ruling, a federal judge granted the FTC a summary judgment that found Amazon responsible for the charges. While entering a password linking an Amazon account to a new device, “a reasonable consumer unaware of the possibility of in-app purchases would not assume she was authorizing unforeseen charges,” US District Judge John Coughenour wrote in his order.

Last month, the FTC and Amazon agreed to end their litigation, clearing the way for the refunds to begin. All consumers eligible for the refunds should have received an email from Amazon.

It was the latest in lengthy FTC investigations into similar in-app purchases on devices running software by Apple, Amazon and Google. In 2014, Apple agreed to a $32.5 million settlement and Google settled charges and agreed to repay $19 million to consumers whose children made such unauthorized mobile purchases through the Android app store.-Gadget 360 reported. The company started receiving problems when they launched amazon app store.

One mother mentioned in the complaint told Amazon that her daughter was able to rack up $358.42 in unauthorized charges. Others complained that even children who could not read were able to “click a lot of buttons at random” and make several purchases without their parents permission-Gadget 360 reported

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