It’s been seven months since a judge said that Amazon is liable for kids’ “accidental” in-app purchases. And just recently, the federal judge said that the top e-commerce site should start setting up a year-long plan to give back parents the money and reimburse them for those accidental purchases. A lump-sum payout worth over $26.5 million was suggested at first by a US regulator but was rejected. The result now is reimbursement which is actually slow but sure.
Amazon is liable and John Coughenour, a U.S. District Judge in Seattle issued an order to pay the parents of kids who purchased apps without their knowledge. Collectively, those “accidents” racked up to about $86 million of charges that as we can describe now as unauthorized.
The case has been open since July 2014 when FTC accused Amazon of making it easy for everyone, the kids especially, to purchase apps and run bills. This order now calls parents to receive reimbursement this coming 2017. Parents are eligible to receive funds and they are guaranteed to receive them.
Amazon’s first request to have the refunds be issued as gift cards was refused and the judge said they will only “undoubtedly recapture some of the profits that are at issue.” This is not the first problem with in-app purchases we’ve heard. Google and Apple both faced similar issues when the FTC filed cases against them back in 2014.