FTC sues Amazon over in-app purchases
In Amazon's case, the apps were purchased using an Amazon Kindle Fire tablet. The FTC is also claiming that when Amazon started allowing in-app purchases back in 2012, it failed to require the use of a password to prevent kids from racking up large dollar amounts of in-app purchases. Amazon sent a letter to the commission earlier, in which it defended its record by saying that it uses "effective" parental controls and that real-time notices are sent with each transaction.
The FTC noted Amazon's policy that all in-app purchases are "final and non-refundable." Still, the commission is demanding that Amazon refund all of the purchases made by children without parental approval. As an example, it cites the story of one child, who spent $350 on virtual items before her mom caught on. Amazon keeps 30% of the revenue generated by these purchases.
source: FTC via USAToday