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FTC charges Amazon with unlawful in-app billing (RCR Mobile Minute)

Mobile Minute:
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The Federal Trade Commission says that Amazon.com has been billing account holders for in-app purchases that they never authorized. The vast majority of the charges occur when a child makes an in-app purchase while playing a game on an Amazon Kindle tablet. The FTC says that many games give kids the option to “buy” various tokens, and that often children may not know when they are spending real money. More than one parent told the agency that children who could not even read were randomly clicking buttons and buying things.
Whether children know what they’re spending or not, parents do not know, according to the FTC, and should not have to pay the charges. The agency wants Amazon to issue refunds to “affected parents” and to solicit permission for all future in-app purchases. (This is typically done by asking for a password.)
It is not clear whether the FTC wants Amazon to refund to parents all the money their kids spent on in-app purchases, or just the portion that Amazon kept.
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ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.