Sunday, August 31, 2014   

Amazon sued over in-app charges
(07-11 18:14)

A US federal consumer protection agency filed a complaint against e-commerce giant Amazon on Thursday, alleging the company is illegally billing parents for their children's unauthorized in-app purchases.
The Federal Trade Commission (FTC) accused Amazon of violating the FTC Act by billing parents for charges incurred by their children when making purchases within apps on mobile devices without parental consent.
The agency is seeking a court order requiring Amazon to refund millions of US dollars to consumers affected by the charges.
When Amazon first introduced in-app purchases, children playing games offered in the Amazon app store could spend money on virtual items within the apps without their parents' authorization.
Amazon changed the in-app charge system in March 2012 to require consumers to enter a password, however this only applied to individual purchases over US$20. The FTC's complaint notes that Amazon continued to allow children to make an unlimited number of purchases under that amount without a parent's approval.
In early 2013, Amazon updated the system again, adding the requirement of a password for individual in-app charges of less than US$20. But according to the complaint, consumers were not informed that entering the password would leave open a window of up to one hour, in which children could make unlimited purchases without further authorization. --Xinhua   
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