Amazon Fighting FTC Over In-App Purchases Fine
An anonymous reader writes One of the common problems of the smartphone generation has been parents who given their phones to children, who then rack up hundreds of dollars of in-app purchases without the parents' knowledge. The FTC smacked Apple with a fine for this, and Google is facing a lawsuit as well. Now, Amazon is the latest target, having received a complaint from the FTC demanding a similar settlement to Apple's. Amazon, however, is not willing to concede the fine; they plan to fight it. Amazon said, "The Commission's unwillingness to depart from the precedent it set with Apple despite our very different facts leaves us no choice but to defend our approach in court (PDF). The main claim in the draft complaint is that we failed to get customers' informed consent to in-app charges made by children and did not address that problem quickly or effectively enough in response to customer complaints. We have continually improved our experience since launch, but even at launch, when customers told us their kids had made purchases they didn't want, we refunded those purchases."
There is no doubt in my mind this was part of the ROI model when they were thinking up ways to pilfer your dollars in somewhat covert ways... there is also no doubt they can make this effort much more transparent for the same reason.
I think Amazon's problem is going to be that just refunding the purchases doesn't help the parents. If the kid maxes out the credit-card on in-app purchases, the parents have to deal not just with those purchases but the fees and interest from over-limit charges on the card and/or the additional costs associated with any declined charges (eg. if I pay a bill on-line using my card and the charge is declined, I get hit for late fees and possibly service disconnections). Having this happen when you're out-of-town (eg. the kid does this while the family's on vacation, and when you go to check out of the hotel you can't pay your hotel bill and you have to figure out why without being able to check your accounts on-line to see what unexpected charges are there). The only acceptable way of handling things is what Amazon should've done from the start: once parental controls are turned on in an app, all actions that would cause a charge or affect parental controls always require a PIN (and ideally there'd be an option to say "don't allow charges period until parental controls are turned off again").
so they can change the policy later when it suits them.
Nope, they need the penalty.
The Amazon AppStore app seems to have an update every two weeks. Every time it updates itself, it resets the values for IAP and parental controls. You need to manually go in after every update, disable IAP and confirm with the password, then manually reset the parental controls and confirm with the password. EVERY FREAKING TIME.
There was one instance (that I know of) that I didn't reset the parental controls and IAP flags after an update, and sure enough, that was when the kids discovered it and went on a spending spree.
NO EXCUSE for resetting the flags every update. They know about it. It isn't a bug, it is a feature that enables profits.
//TODO: Think of witty sig statement
The problem here is that parents/kids don't have enough authentication to block purchases being made by the wrong person... there really should be better security like face recognition to say "Uhm, kid, that costs money!" or "Parent, you can't spend your kid's money for them!"
um... how bout... we don't give our children expensive toys... especially ones that have the ability to rack up bills.
Now I get it... you don't want your kids to feel left out... but seriously when did it become a good idea to give your child the smartphone/device? I mean geeze, a replacement costs anywhere from $100-$600 or more. My parents would never have let me have one as a child. Heck... they were reluctant to let me watch TV all day.
I remember being told no more than a 1/2 hour... And I thought that meant 1 and a half hours... and I thought a 30 minute program was a 1 hour program and 1/2 of the next program was a half-hour... So in reality I'd watch 45 minutes.
But back on topic. When did it become ok to give our kids (as young as 1 year old!!!) expensive items to play with. I swear when I have kids, they will not be allowed to play with my digital toys... at least not until they are at least 7-10 years old. And they will not have their own personal ones until maybe middle school, but most likely high school.
SO all in all... I think the problem is less with these services... but more with the parents!
And don't give me well the kids got to it.. it's called put it in a place they can't get to... like your phone should literally be on you at all times... or at least in the same room as you... and your tablets should be in places they can't reach if you aren't near them. like high up on a mantle... or even in a locked safe... I'm serious.
why does my post keep getting deleted... I'm not saying anything inappropriate...
Their fault for the kids? Perhaps not.
It's entirely their fault that they decided to take advantage of it though.
When you're selling products aimed at children, you should hold yourself to a higher standard. If not, well, I guess that's why we're not in a society of Darwinian Randists.
Think of the children and profit.
Should you really be giving your nine year old a credit card (ie not just a debit card, but an actual credit card)? Because that's exactly what your doing when you give them a cellular phone which is attached to a contract (or any similar device with cellular data services for that matter). As a parent YOU become responsible. YOU consented to whatever charges your child makes as a result.
The solution to this problem is simple. Stop giving your kids devices targeted at adults or attached to contact plans. I'm not even being overzealous here as I'm not suggesting your kid shouldn't have a cell phone. What I am suggesting is that there are good no-contract options (and pre-paid options for that matter) on the market from t-mobile with and without data. I have such a phone and a no-contract plan. You don't have to be a minor to get one either. I'm 30 with a good credit rating, morgage, car, etc.
Whats worse is the parents who are in this situation have already paid excessivly for the service in most cases. That is most have failed to do even a small amount of research. t-mobile covers most populated areas and short of parents living in the countryside, etc its probably a very poor decision to go with AT&T or Verizon. The reason being the no-contract t-mobile plans are CHEAPER than the options from Verizon and AT&T! There is simply no excuse here. Give your kid a no-contract plan and phone and your problems solved.
I don't want a nanny state. Stop forcing it on me. And- I'm FOR regulation in many cases where there are monopolies, etc (phone, internet, software, etc). Unfortunately we let corporate america walk all over us and then refuse to take responsibility for our own actions.
Now you don't need an cc to get an apple id but still why an password for for the free apps? Wh3y not just for payed stuff? Also the old 15 min thing where after buying an free app that it opens up an no password needed to buy stuff at cost
I don't want a nanny state. Stop forcing it on me
We need to have the "nanny state" for those adult programmers who can't tell right from wrong and engineer there games in a deceptive and unfair way.
Sorry that it might interrupt your revenue stream, but the the games really should have a twenty for hour "refund" window, where there is an unconditional refund given to in-app purchases.
Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
From the article, it doesn't state where all of these in-app purchases were made (games, apps or both.)
I agree, that no one should be able to buy anything without checks and balances, but I also agree that most parents don't know how to use their device properly, let alone teach their kids how to use it and keep them from making these purchases. The real issue here is the entire IAP business model. Great for business to keep this as inconspicuous as possible, bad for everyone else. But this is something we need to learn, as parents or everyday users.
My point is, does Amazon own and develop every single app and game on the Amazon App Store? I seriously don't know, haven't owned one of these devices. If they don't, then why are they going after Amazon? Should they not be going after the developing company for creating an app/game that is so easy to rack up charges?
We need to have the "nanny state" for those adult programmers who can't tell right from wrong and engineer there games in a deceptive and unfair way.
"wah wah! its unfair that I can't just give my kid a credit card and know that they wont spend any money!"
Seriously? Be a better parent because right now you are a very very bad one.
"His name was James Damore."
So my kid purchased some international roaming calls in the 'phone' app, it didn't even have to enter a password.
Can I please have my 3000$ back?
If you really dont want to be responsible for your actions, then let me take control of your life. You will love it. Living in a room with no windows (sunlight gives you cancer) or electricity (electricity is dangerous.) The door is locked because wandering around the world is dangerous. You will earn food by performing simple safe tasks for me. No plumbing because that might be dangerous. Clothing wont e allowed because you might get tangled. The walls will be padded because I cant trust that you will understand the sign that says dont repeatedly slam your head into the wall. All nice and safe. You. Will. Love. It.
Locked door? "Simple tasks"? No clothing?... The whole thing comes across disturbingly like your subconscious has inadvertantly recycled (and leaked) your sex-slave bdsm dungeon fantasy.
You will earn food by performing simple safe tasks for me.
Not that safe, you can still catch diseases that way... :-O
So, you are claiming the devices are targeted to adults? What a joke. How many games are available on the various devices specifically for kids? How many games with in-app purchases have a rating below age 10?
True, at least in our case.
Still, I could have done without the shock of seeing the huge charge (over $200 ... more than the cost of the Kindle Fire HD!) ... our 8-year old could have done without the stress of having his parents mad at him when he didn't realize he wasn't doing anything wrong ... I could have done without having to spend time getting a refund.
And what about those who didn't jump through the hoops to get their refund?
So, screw Amazon. Throw the book at them.
I'm sick and tired of these hip, "ironic" sigs. This is an actual, honest-to-goodness no-nonsense sig!
We didn't give our son a credit card. We didn't give him a cell phone. We gave him a Kindle Fire HD, and had no idea that by default he would be able to buy things with real money without our needing to put our password in.
After getting a huge charge from in app purchases I complained to Amazon and was immediately and cheerfully given a refund, with instructions for how to turn on the setting to require password for in app purchases.
Amazon knew what it was doing when they made the default setting "no password required for in app purchases". I'd be happy to see them get a massive fine for that greedy and disgusting decision.
I'm sick and tired of these hip, "ironic" sigs. This is an actual, honest-to-goodness no-nonsense sig!
Amazon is just viewing themselves as above the fray while being in the middle of it.
Get a tattoo on the inside of your eyelids: THE ONLY WAY TO WIN IS NOT TO PLAY. If these parents had never set up in-app purchases, their kids would never have bankrupted them. If game players had never bought in-game stuff, companies wouldn't keep doing it.
Then you did not read the instructions, and there was no need to link his Kindle Fire HD to a credit card. You just link it to a new Amazon identity and any purchases have to be made with credit from Amazon gift vouchers you purchased for their account. It's dead simple and how both my nieces have had their Kindle Fires setup from day one. They can make in app purchases but only from a limited pool of credit.
Every memember of my family has a Kindle. The Free Time app prevents all in-app purchases regardless of what the App Store settings are. If I let the kids turn off Free Time I still get an email almost instantly when any purchase is made. Amazon has done their due dilligence, if people are still having huge bills racked up by their children they need to look in the mirror for the guilty party.
Preface: I managed a customer service call center for Google.
I've seen stupid amounts claimed by parents that "my kid did it!", I mean in orders of thousands of dollars, over several months. Literally people are blaming kids for their own purchases, and then turning around and attempting to get their money back.
I've also seen legit issues where the children charged over a thousand dollars over a day or so. But again, is the liability on the company when you facilitate unauthorized purchases?
There ARE security features that prevent this, these features are easy to use. Children should not have the ability to purchase anything utilizing your accounts period. If you gave them access to that device, and access to your accounts, you are responsible for the resultant actions. It doesn't matter how easy it is to make a purchase, or how well disguised this purchase is in in app purchases. You can lock this down and chose not to, you input your payment information into the phone for their access.
TL;DR /. who couldn't). Resulting charges are your own damn fault.
Lock your in-app purchases in your phone using the settings. look it up if you cant figure it out (this is
There is no doubt in my mind this was part of the ROI model when they were thinking up ways to pilfer your dollars in somewhat covert ways... there is also no doubt they can make this effort much more transparent for the same reason.
It is an abomination. Children are being taught that they can buy their way through gaming and don't need to practice for hours to get through games.
The developers of the games are also changing the format of the games to pressure players into paying for upgrades or credits. This is not the way it was meant to be.
It is clear who is responsible for this. The three companies who have the control of the application delivery platforms. Those three companies who are already far wealthier than they should have ever been allowed to be are not satisfied with what they have. They are monstrous. They have full control over application approval and should be doing the responsible and the proper thing and forcing these in games purchasing producers to stop.
Aside from all the above children don't have credit cards and incomes so the person who is paying is the parent and in some cases these bills could financially ruin some families.
BAN IN GAME PURCHASING. If the government had any interest in looking after the people like its supposed to this would never happen, as they would step in and create a law banning in game purchasing.
What is the difference between an App and a website?
At this point the apps in question are basically clients for a web or internet program.
So really the difference between an app and a website is pretty limited.
Obviously we have no problem with in website purchases. We do those all the time.
And websites through cookies often keep us logged in allowing people to buy things without going through additional steps. Amazon One Click for example lets you go through the whole checkout process very quickly.
But no one has a problem with that.
I think the issue is that the apps link to the amazon or apple or google account even though they're not amazon or apple or google products.
That link to another account is I think the problem here.
Giving a program access to that information should be explicit and optional.
For example, just because I install itunes on a machine doesn't mean I need to link to an itunes or apple account. I don't have to register it with apple at all.
Now if I dont' do that then I can't buy things on the itunes store. But the program still otherwise works.
Same deal throughout. have people reenter their billing information for each app just as they do with websites rather then letting the app access the payment information stored by amazon or google.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.