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Amazon Is Refunding Customers $70 Million for One Annoying Problem

By Andrew Alpin, 16 Apr 2017

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Amazon like all e-commerce sites is one of the easiest ways to shop. Just lie back on your couch and click!! You’ve made a purchase from their phone app. As simple as that sounds for you, it’s the same for kids who may be click clicking and purchasing without your consent.

But!! Here is some fantastic news to good to be true but t actually is. Amazon is refunding $70 million, yes!! You heard right upto $70 m for all in app purchase made by kids without parental consent.

1 Amazon agrees to compensate $70 million in refunds

The FTC retail giant has just set the stage for a potential $70 M in refunds for in app purchases made by kids between November 2011 to May 2016. They have agreed to set aside their own appeals in such cases agreeing to the refund.

Last year there were several cases against Amazon where a court found that the online retail had allowed kids to make purchases without authorization or consent from parents. It is in app purchases that are the biggest revenue source for Amazon and games are the most likely attraction compelling kids to make random purchases without their parent’s knowledge.

Little boy using smartphone

Image Source: www.mshcdn.com

2 Free game downloads enticing kids to make purchases

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The Federal Trade commission had sued Amazon in 2014 for lack of implementation of strong parental controls that failed to prevent children from making purchases of apps on its online store to the tune of $70 million between November 2011 and May 2016.

Several complaints made by parents alleged that the company did not make sufficient disclosures about their in app purchases that applied to free mobile games downloads on their mobile apps. As a result kids were unknowingly making purchases while thinking they were acquiring downloads free. Amazon in app games mainly target children.

Games get more progressive as you purchase booster products with money in which case, credit cards. This has led to several incidents resulting in sky-high credit card bills. As a result Amazon is refunding $70M.

Free game downloads by amazon

Image Source: www.techtimes.com

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