Amazon Fights FTC on In-App Purchases
Amazon is refusing to submit to Federal Trade Commission (FTC) requests that it change its in-app purchase policies, saying that it will "defend our approach in court." In a letter, one of Amazon's lawyers explained, "When customers told us their kids had made purchases they didn't want, we refunded those purchases." He added that Amazon provides "prominent notice of in-app purchasing, effective parental controls and real-time notice of every in-app purchase."
The FTC says that it has received thousands of complaints from parents whose children made in-app purchases through the Amazon Appstore without their consent. It wants Amazon to change its policies, including requiring a password for every in-app purchase.
Any change in policy could impact the mobile development industry, which relies on in-app purchases for a large and growing segment of its revenues. Apple previously agreed to a similar deal offered by the FTC.