FTC: Amazon Refunding $70M Of Unauthorized In-App Purchases Made By Children

If you’re a parent and your kid bought apps on Amazon without your permission, listen up: Amazon is refunding more than $70 million in unauthorized in app purchases, the Federal Trade Commission announced Wednesday.

The refunds come after the FTC sued Amazon in 2014, claiming the online retailer billed parents and other account holders for unauthorized app purchases made by children. The FTC said Amazon’s setup allowed children to make unlimited purchases without parental involvement within apps.

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The FTC and Amazon settled the litigation last month. Last year, a federal court found Amazon billed customers for unauthorized in-app purchases made by minors through apps, such as online games downloaded through the retailer’s app store. The court found the company failed to get parents’ permission for the purchases. The ruling also denied a request by the FTC for an order that would have prohibited Amazon from similar acts in the future. The FTC appealed the ruling regarding the injunction, and Amazon appealed the finding that said it had violated the law.

The FTC and Amazon then decided to settle, which allowed the refund process to begin.

“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.”

How to Get a Refund From Amazon

Amazon began offering refunds to customers on Tuesday for unauthorized in-app purchases by children made between November 2011 and May 2016. Amazon has been sending emails to those who might have been affected, the FTC said. You can apply for a refund at this website, and Amazon will review your request. The company may contact you for additional information after you file the request. You also don’t need to call or send anything to Amazon by mail.

If you think you could have been affected by unauthorized purchases you need to submit your request by next May 28.

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FTC and Tech Companies

Amazon isn’t the first tech company to face action from the FTC. Apple settled a case with the agency in 2014 over unauthorized in-app transactions made by children. The FTC said Apple failed to notify parents that typing in a password would approve a transaction and then open a 15-minute window in which unlimited charges could be made without authorization. The agency said the refunds totaled a minimum of $32.5 million.

Google also settled a case in 2014 with the FTC over unauthorized in-app purchases made by kids. That case also referenced the password issue and a 30-minute window in which minors could make unlimited charges without authorization. The case involved millions of dollars in refunds to parents.