Judge wants Amazon to refund unauthorized in-app purchases made by children
When the FTC brought its original suit against Amazon in 2014, the government agency said that Amazon didn't prevent kids from running up $86 million of unauthorized charges while playing games like "Pet Shop Story" and "Ice Age Village." Amazon has since added protection to prevent users from getting hit by unauthorized charges.
The court's ruling requires Amazon to start notifying parents early in 2017 that they are eligible for a refund. The court did shoot down a request by a U.S. regulatory agency for Amazon to settle the charges with a $26.5 million lump sum payment. U.S. District Judge John Coughenour, who is overseeing the case from the bench, agreed with Amazon and said that the $26.5 million was too high a figure. On the other hand, the judge shot down a request by Amazon to pay the refunds in the form of gift cards. He said that if allowed, Amazon would "undoubtedly recapture some of the profits that are at issue."