Slashdot Mirror

← Back to Stories (view on slashdot.org)

Amazon Will Refund Millions of Unauthorized In-App Purchases Made By Kids (techcrunch.com)

Posted by BeauHD on from the parental-advisory dept.

Amazon will refund millions of dollars worth of unauthorized in-app purchased made by kids, having dropped its appeal of last year's ruling by a federal judge who sided with the Federal Trade Commission in the agency's lawsuit against Amazon. "The FTC's original complaint said that Amazon should be liable for millions of dollars it charged customers, because of the way its Appstore software was designed -- that is, it allowed kids to spend unlimited amounts of money in games and other apps without requiring parental consent," reports TechCrunch. From the report: The issue had to do with the way the Amazon Appstore's in-app purchasing system worked. The Amazon Appstore is the store that comes preloaded on Amazon mobile devices, like Kindle Fire tablets, for example, though there is a way to load it onto other Android devices, too. In Amazon's Appstore, which launched back in 2011, the company didn't originally require passwords on in-app purchases. This allowed kids to buy coins and other items to their hearts' content. One particularly awful example involved a game called "Ice Age Village" that offered an in-app purchase of $99.99. Amazon introduced password-protected in-app purchases in March 2012, but then only on those where the purchase exceeded $20. In early 2013, it updated the system again to require passwords, but also allowed a 15-minute window afterwards where no password was required. The FTC said Amazon didn't obtain "informed consent" until July 2014. To make matters worse, parents complaining weren't told how to get a refund and Amazon had even suggested at times that refunds weren't possible, the FTC's complaint had said. More than $70 million in in-app charges made between November 2011 and May 2016 may be eligible for refunds, the FTC notes. It's not likely that all affected customers will take the time to make their requests, however.

49 comments

  1. "may be eligible for refunds" by turkeydance · · Score: 1

    yep.

  2. Google Never refund mine. by martiniturbide · · Score: 1

    I just got this answer on 2014 - http://imgur.com/a/vDDD2

    1. Re:Google Never refund mine. by Anonymous Coward · · Score: 1

      As someone who has used both Android and Apple platforms, this is one of my main gripes about Google. Apple doesn't even blink when you request a refund -- it is processed quickly and without any pushback. No enforcement of cutoff windows or other nonsense.

    2. Re:Google Never refund mine. by Anonymous Coward · · Score: 1

      that has not been the experience of my sister who spent weeks with back and forth before they refunded what she says were fraudulent transactions.

    3. Re:Google Never refund mine. by stephanruby · · Score: 1

      Did you contact the app developers like they said in that message? It would seem app developers would issue refunds -- if only to keep their star rating high in the google play store.

    4. Re:Google Never refund mine. by nitehawk214 · · Score: 2

      Hahaha, no they won't give money back. And I doubt they care about star ratings. Tricking kids into in app purchases is how fremiums work.

      --
      I'm a good cook. I'm a fantastic eater. - Steven Brust
    5. Re:Google Never refund mine. by martiniturbide · · Score: 1

      I sent an email to Rovio and they never replied. Since it wasn't too much I didn't pushed harder. So they won. Even that they told you to contact the developer, I think that the "store" should also have some responsibility when this happens.

    6. Re:Google Never refund mine. by martiniturbide · · Score: 1

      Please remember that my case was on 2014. Maybe Google is faster now on giving refunds on complains, but I don't have a newer experience.

  3. I want a refund! by LoginOrSignup · · Score: -1

    Hi, I gave my child my credit card info and was surprised when they bought stuff online. I shouldn't be responsible!

    1. Re:I want a refund! by Anonymous Coward · · Score: 0

      That's not what this case was about. At all.

      Thx though.

    2. Re:I want a refund! by Anonymous Coward · · Score: 0

      Is your credit card number 5784365343410709?

    3. Re:I want a refund! by AthanasiusKircher · · Score: 5, Informative

      Hi, I gave my child my credit card info and was surprised when they bought stuff online. I shouldn't be responsible!

      Not what happened. What actually occurred here: back in the days a few years back before a lot of parents were experienced with tablets and even knew what an "in-app purchase" was, Amazon shipped out tablets and linked them to Amazon user accounts (which had credit card info attached).

      Parents who had never made an in-app purchase and this couldn't even foresee the need to avoid them or warn kids against them suddenly found themselves with $300 bills for virtual "smurfberries" or whatever due to the unknowing actions of a 4-year-old playing a game that was advertised as FREE on Amazon's appstore.

      In other words, this was a toy unlike any other parents had encountered, which would suddenly start charging parents more money without asking them. And, as noted in the summary, even after Amazon became aware of the problem, it didn't offer a setting to turn those purchases off for years... So even if a parent had the good sense to password protect app purchases themselves, the kids could still go make IN-app purchases with no notice.

      That's pretty much the definition of non transparency in user settings, where the default should ALWAYS be "don't charge me money unless I confirm, and at least give me an option that requires me to confirm and authenticate EVERY time if I want."

    4. Re:I want a refund! by Anonymous Coward · · Score: 0

      My credit card number is 0118 9998 1199 9119.

      CVV: 7253

    5. Re:I want a refund! by Anonymous Coward · · Score: 0

      My phone is my credit. App me.

    6. Re:I want a refund! by LoginOrSignup · · Score: 2

      Thank you! I was speaking as some kid in the 80s who was given a blank check by my parent and I sent it to Nintendo in Washington State filled out in 3rd grade cursive for a "NES with Mario 2 and hopefully Ninja Gaiden"

      My mother got a call from NES because "that seemed odd".

      I got the beating of my life.

    7. Re:I want a refund! by Anonymous Coward · · Score: 0

      " where the default should ALWAYS be "don't charge me money unless I confirm, and at least give me an option that requires me to confirm and authenticate EVERY time if I want.""

      The whole "in app purchasE" model is based on fraud and technological illiteracy, mmo's, drm and 'buying fake goods' inside videogames takes advantage of human irrationality. Just look at what blizzard charges people for mounts for world of warcraft - a game you're already paying for if you are already a subscriber. The shit is unreal. It all comes down to the fact that the human mind didn't evolve to deal with computer tech, most people are irrational when making economic decisions and the whole "f2p" in app purchase model takes advance of it. It's basically gambling psychology taking advantage of the population with poor impulse control both kids and adults. The whole of modern gaming entertainment is sick and it began with mmo's/steam. AKA paying for corporate malware infected games.

    8. Re:I want a refund! by 93+Escort+Wagon · · Score: 1

      My credit card number is 0118 9998 1199 9119.

      What does it say about me that I immediately realized you got a digit wrong there?

      --
      #DeleteChrome
    9. Re:I want a refund! by Anonymous Coward · · Score: -1

      Your parents sound like real winners in life. Hopefully you weren't dropped at some point.

    10. Re:I want a refund! by n329619 · · Score: 1

      Looks like it's time to borrow your friends tablets for in-app purchase.

    11. Re:I want a refund! by Anonymous Coward · · Score: 0

      While for some people it might be based on fraud and technological illiteracy. For some people in app purchases are actually quite reasonably justified.

      I personally play a free to play game and have been playing it for nearly a year. Each month I spend 5$ on the game. I get more than my money's worth of enjoyment from the game.

      On the other hand someone goes to a bar and spends 30$ for a night of drinks, gets a headache the next morning and is left slightly less healthy, if he does this once a week he's out 120$ a month.

      If people are willing to pay for the in-app purchases it usually means they're getting their money's worth of enjoyment from it. Except for people ofcourse addicted to a sort of gambling system present in many of these games. But those people need help, and not in the form of restricting these games.

    12. Re:I want a refund! by Maritz · · Score: 1

      Get a semi-bright kid to read/explain the article to you, maybe then you'll have a chance of comprehending what is going on here.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    13. Re:I want a refund! by AmiMoJo · · Score: 1

      I'm disappointed that Amazon would let anyone spend $300 on "smurfberries" in the first place. The payment system should have some kind of sanity check in it... Or are there people who really spend that much on in-app purchases willingly?

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    14. Re:I want a refund! by Anonymous Coward · · Score: 1

      So specifically, I ordered and Amazon Fire tablet. I bought it through Amazon's website. Once purchased, you can set up parental controls etc. on the device through Amazon's own website.

      Except, it doesn't actually work.

      It HAS to be set on the hardware itself as well.

      I had my device set to require a password for any/all purchases. My 2 year old still managed to purchase "Trolls" when the ad went by on the screen, she never had to use a password.

      Amazon reversed the charge almost immediately, and the rep. showed me where to lock purchases on the device itself, but I had ever reason to believe it had already been locked and what happened wasn't possible. The device settings locally did not match what Amazon said the device settings were via their site.

    15. Re:I want a refund! by Anonymous Coward · · Score: 0

      It's also worth noting that, if you order your Fire Tablet directly from Amazon, that the unit they ship you will be pre-populated with your account information, minimizing the setup process.

    16. Re:I want a refund! by Anonymous Coward · · Score: 1

      " where the default should ALWAYS be "don't charge me money unless I confirm, and at least give me an option that requires me to confirm and authenticate EVERY time if I want.""

      The whole "in app purchasE" model is based on fraud and technological illiteracy, mmo's, drm and 'buying fake goods' inside videogames takes advantage of human irrationality. Just look at what blizzard charges people for mounts for world of warcraft - a game you're already paying for if you are already a subscriber. The shit is unreal. It all comes down to the fact that the human mind didn't evolve to deal with computer tech, most people are irrational when making economic decisions and the whole "f2p" in app purchase model takes advance of it. It's basically gambling psychology taking advantage of the population with poor impulse control both kids and adults. The whole of modern gaming entertainment is sick and it began with mmo's/steam. AKA paying for corporate malware infected games.

      More accurately it's based on operant conditioning and addiction.

      The game provides rewards for doing tasks, and initially spots you some resources so you can do those tasks rapidly at no cost. Then once your initial supply is out you can "earn" more slowly through play but getting the same rewards requires progressively more resources over time, or you can buy more resources instantly with money.

      Though that's not the only model. There are also playable demos where you pay to unlock the bulk of the content, and a la carte expansions where the core game is playable but optional content like additional levels, game modes or playable characters are availabe for a fee.

      Another model that would make sense but generally doesn't get used is if you have a free viewer app for a content library where the content is priced on a "buy what you want to see" model. Like say if you could buy kindle books within the kindle app. Though app store rules on pricing have made most of those move to "you can access your library with the app but you have to buy from our webpage".

    17. Re:I want a refund! by Anonymous Coward · · Score: 0

      I'm disappointed that Amazon would let anyone spend $300 on "smurfberries" in the first place. The payment system should have some kind of sanity check in it... Or are there people who really spend that much on in-app purchases willingly?

      What would be the rules of this "sanity check"?

      The user did buy those smurfberries on purpose. The issue was that the user was a child with no legal standing to enter into the agreements that underpin the payment system and Amazon did not secure the permission of the child's parents on the transaction(s) in question.

      And there's really no clear way to assign value to in-app purchases that can be generalized. As an example, a document editor that let you buy comercial licenses for stock photos and line art for use in your documents as in-app purchases could easily rack up a $300 bill under the direction of an adult produceing content for their business. Or a game that periodicly releases a new expansion with new levels, new characters new items etc. for $25. If the game has been around for a while getting caught up could rack up a high tab. Are they supposed to hire people to second guess their users aanc call you up with "did you really order $50 worth of dick pics from the DickPicker app?".

  4. Thinking people aren't breeders. by Anonymous Coward · · Score: -1

    They obviously have decided to help people that aren't that smart and decided to become breeders. This is sad.

    1. Re:Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      This. They shouldn't support weak people that made the decision to breed.

    2. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      This. They support weak breeders instead of thinking people.

    3. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      True. Glad I live in Seattle where breeders are treated like crap.

    4. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      Seattle has more dogs than children. That proves we're smarter than most of the US.

    5. Re:Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      Here in Seattle there are more dogs than children so we live in an enlighten area. I know none of my coworkers at Microsoft are stupid enough to own one of those dogs are cats which proves they aren't like the South that loves those stupid things.

    6. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      The white race is practicing voluntary self extinction. When brown people come to take your underpopulated homeland from you, nuke yourself and die in a blaze of glory.

    7. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      SAMEFAG.

    8. Re:Thinking people aren't breeders. by Maritz · · Score: 1

      I'm glad you think breeding is bad. Keep thinking that.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    9. Re: Thinking people aren't breeders. by Maritz · · Score: 0

      The white race is practicing voluntary self extinction. When brown people come to take your underpopulated homeland from you, nuke yourself and die in a blaze of glory.

      The amount of information you have to be ignorant of to hold this view without massive cognitive dissonance is truly staggering. Congratulations on your carefully impoverished mind. I bet you're religious too? Keep it up champ.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    10. Re:Thinking people aren't breeders. by Maritz · · Score: 0

      I know none of my coworkers at Microsoft are stupid enough to own one of those dogs are cats which proves they aren't like the South that loves those stupid things.

      Sorry, what the fuck are you trying to say? You're doing a disservice to coherence.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    11. Re: Thinking people aren't breeders. by Maritz · · Score: 0

      Do you also make posts that don't talk about how you live in Seattle?

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    12. Re: Thinking people aren't breeders. by Anonymous Coward · · Score: -1

      Boy, I'll say you're smart!!

      I search on Seattle, WA and saw a whole shitload of blue.

      Hey, at least you tried.

    13. Re:Thinking people aren't breeders. by MooseTick · · Score: 0

      Sorry you aren't getting laid...

      --
      Ninjas don't carry tic tacs
  5. Opposite problem by Anonymous Coward · · Score: 0

    My son is set up on his kindle fire as a child's account. Now he can't ever make any purchases because of their stupid FreeTime thing. The forums don't explain how to bypass, and there's no obvious temporary override for the parental unit.

  6. thats good by Anonymous Coward · · Score: 0

    but why not leave control settings to the parents and create rules for the devs of these games and device level kid locks and settings for that(ios has some integrated settings with restrictions). for the game itself and ingame purchases they should either have separate accounts or a ingame security feature or child prof options it does not even have to be default.

      i think if these where in place it would happen a lot less often and when it does a leason learned and addresable. as for the devs with this this in place they may be more inclined to add measures if it is not set in stone as a rule.

  7. apple by Joe_Dragon · · Score: 1

    And apple had it where you needed a password to install free apps and that same password or 15 min free for all let you BUY stuff as well.

    It's like this cable system that used to have that mad you go though 1-2 buy/rent screens for a $0 VOD with cost $0.00 on them the same screens to rent a VOD PPV.

  8. OSDCA by Hognoxious · · Score: 1

    It's more like you went to a car dealership once and bought some spare parts. Three years later your kid's riding by. They recognise him, hand him the keys to Ferrari then charge it to your card.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  9. Poor parenting by p51d007 · · Score: -1, Flamebait

    Instead of parenting, parents just give their phones to their children as a baby sitter.

  10. What about cats? by backslashdot · · Score: 1

    What if your cat kept pressing the dash button?

  11. This is what Amazon really is by Anonymous Coward · · Score: 1

    This is no accident. Does anyone think that? Do you really need to blame the user's behavior? I guess if you work for Amazon then you need to do that.

  12. Kindle accounts by phorm · · Score: 1

    Yeah, I had the same problem with Kindle accounts. Kindle is purchased as a gift, but it gets automatically configured/bound to the account of the purchaser "as a convenience". This means that when I bought a kindle for my brother-in-law, I unlink it so that he wasn't getting my library/purchases/etc

  13. Why was this modded a troll? by Anonymous Coward · · Score: 0

    In light of the fact that conservatives are on the uneducated end of the scale, why in the world would this comment have been modded down? Are you trying to hide the truth?