Amazon has made some mistakes and now they have to pay according to the FTC. Back in 2014, the FTC sued the online retail powerhouse saying that they allowed children to make in app purchases on the Kindle Fire to the tune of a few million dollars, just a few months after Apple settled a similar case with the FTC. Amazon, not one to take a fight lying down, decided to go for the case instead of settling, but it seems that now they are going to pay big time.
Amazon did offer refunds for angry parents who claimed their kids had made unauthorized in app purchases, which they feel should be enough, but the FTC wants more because they believe that these actions have caused “injury” to the customers as well. Amazon argues that, basically, at the time, they couldn’t have predicted that this would be a problem. Now companies avoid this issue by requiring customers to input a password for each individual purchase, however, at the time, there was no such protection.
The case is still going on and no one can predict what is going to happen. The FTC still settled with Apple and they ended up paying $32.5 million dollars, even though they already offered affected customers refunds. This is important for any retailer because the outcome of this case may set a precedent for kids who make purchases that their parents aren’t happy about.
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