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FTC Sues Amazon Over In-App Purchases by Children

Joe Mont | July 14, 2014

The Federal Trade Commission is suing Amazon, alleging that the online retailer did nothing to prevent millions of dollars in unauthorized in-app purchases by children despite internal warnings among Amazon employees as early as 2011 that allowing unlimited charges without any parental passwords was causing problems for many customers.

The complaint alleges that Amazon's setup allowed children playing these kids' games to spend unlimited amounts of money to pay for virtual items within the apps such as “coins,” “stars,” and “acorns” without parental involvement or authorization. The complaint alleges that when Amazon introduced in-app charges to the Amazon Appstore in November 2011, there were no...

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