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."

Comments

It's not just the refund

[Todd Knarr]

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").

Re:It's not just the refund

[Xenx]

People aren't willing to accept responsibility for themselves and their kids. We shouldn't be forcing the companies to accept the responsibility instead. If you don't agree with how Amazon does it, don't buy their devices or use their appstore. If they feel they're losing too many customers based on their business practices.. they'll change them. Either way, they shouldn't be targeted by the FTC.

Re:The Amazon AppStore Auto-consent

[itsdapead]

What is next, blame Ford because your kid was able to steal your keys off your dresser and wreck the car while you are sleeping?

...if Ford made the key fob in the shape of a cartoon character with a voice chip that kept saying "Hey kids! Pick me up and lets go for a drive" then, maybe.

Yes, parents should take responsibility for their kids - but that doesn't give businesses the right to exploit their slightest lapse.

Re:The Amazon AppStore Auto-consent

[eclectro]

They know about it. It isn't a bug, it is a feature that enables profits.

The games are purposefully engineered to be faulty so that you are *required* to make an in app purchase. And with the 'one click' nature of the in app purchases, it is easy for the game to make a purchase for you - either by mistake or by design!