In good news for parents whose children enjoy making in-app purchases without asking permission, Amazon will soon set up a program that could distribute up to $70 million in refunds.
On Tuesday, Amazon and the Federal Trade Commission agreed to end appeals related to a decision made last year in federal court that found Amazon liable for in-app purchases made by children. The court ruled that Amazon did not have enough safeguards in place to keep kids from making these pricey buys without authorization from an adult. Many apps have the option of purchasing — with real money — boosts that can make a game easier or more enjoyable to play. The new program will cover purchases made from November 2011 to May 2016.
"This case demonstrates what should be a bedrock principle for all companies — you must get customers' consent before you charge them," Thomas B. Pahl, acting director of the FTC's Bureau of Consumer Protection, said in a statement. "Consumers affected by Amazon's practices can now be compensated for charges they didn't expect or authorize." Amazon is expected to release details on the refund program soon.
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