Amazon will battle the FTC over kids’ in-app purchases, rejecting a Google-style settlement
Amazon is doubling down in an unusual lawsuit with the federal government, which is suing the retail giant for allowing kids to make one-touch purchases from apps on the Kindle Fire device.
The lawsuit is unusual because Apple and Google have already settled with the Federal Trade Commissions over similar allegations, and agreed to pay $32 million and $19 million in refunds to parents, respectively. The FTC says all three companies conducted unfair trade practices by selling so-called “bait app” game that are typically free, but invite the player to purchase “acorns” or some other type of digital good. In its complaints against Amazon, the FTC says “thousands” of parents complained after their kids ran up bills, sometimes worth hundreds of dollars, in app expenses on their Kindles. Amazon filed a renewed dismissal request that suggests the government’s complaint is misguided and over-zealous.
Amazon will battle the FTC over kids’ in-app purchases, rejecting a Google-style settlement