Amazon refuses to settle with FTC over in-app purchases
SAN FRANCISCO: Amazon.com Inc is fighting US regulators' demands that it pay a penalty over its policies on purchases made by children on smartphone applications, according to documents seen by Reuters.
Amazon, the largest US online retailer, faces a potential lawsuit from the Federal Trade Commission, which wants the company to enter into a settlement similar to the one reached with rival Apple Inc in January.
At issue are in-app purchases, in which apps that are downloaded for free onto a smartphone or tablet then charge users for additional services through registered credit cards. Consumers say that children are susceptible to the practice, leading to large bills.
In a draft complaint, the FTC said there have been thousands of complaints related to millions of dollars in unauthorized in-app charges by children on Amazon devices. The agency said Amazon only changed its in-app charging policies last month.
