Amazon to refund $70 mn for unauthorised in-app purchases

The in-app charges occurred from purchases made by kids when playing with freemium apps

amazon
IANS New York
Last Updated : Apr 05 2017 | 5:00 PM IST

Amazon has decided to refund up to $70 million to its users, a move that comes a year after the company was found guilty of illegally billing users for unauthorised in-app purchases.

The in-app charges occurred from purchases made by kids when playing with freemium apps.

A US federal court in 2016 ruled that Amazon had failed to "clearly inform parents that free apps may still include in-app purchases, and did not provide enough notice and password requirements to prevent unwanted charges."

According to a report in Verge on Tuesday, the Federal Trade Commission (FTC) estimated that parents were charged upwards of $70 million between November 2011 and May 2016.

According to the FTC, Amazon will begin is refund programme "shortly".

In November 2016, Amazon had requested a US district court that it would make refunds in form of gift cards, but the request was rejected.

It is, therefore, expected that the company will refund affected customers money back directly to their debit or credit card, or through paper checks.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 05 2017 | 4:57 PM IST

Next Story