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FTC Sues Amazon For Millions In Unauthorized Charges Incurred By Children

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Walmart's Moat in the US Grocery Market (GuruFocus) (NASDAQ: AMZN) got what it wanted Thursday when federal regulators launched a lawsuit alleging that the company had insufficient controls on children buying its mobile applications.

Amazon billed parents and other account holders for millions of dollars in unauthorized in-app charges incurred by children, according to a Federal Trade Commission complaint filed Thursday in federal court.

The seeks a court order to refund the unauthorized charges and permanently ban Amazon from billing parents and other account holders for in-app charges without their consent.

The suit had been subject to negotiation and Amazon attorney Andrew DeVore said in a letter to the FTC last week that Amazon will "defend our approach in court," rather than agree to fines and other proposed requirements.

The letter was leaked to The Wall Street Journal.

Apple (NASDAQ: AAPL) settled a similar case with the FTC in January when it agreed to customer refunds of at least $32.5 million, after settling a related a class-action suit representing aggrieved parents and received 37,000 refund claims related to the issue.

Posted-In: Andrew DeVore FTCNews Legal


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