The retail giant, Amazon has decided to refund $70 million to its users and has finally stopped appealing as well. This comes after Amazon was found guilty of billing consumers for unauthorized in-app purchases made by children. Approximately six years ago Amazon started its in-app purchases, where 30% of the each transaction goes to the company.
Dating back to July 2014, roughly three years ago, The Federal Trade Commission (FTC) sued Amazon alleging that the app store illegally allows the children to purchases within mobile apps without seeking proper consent from their parents.
By the time when parents noticed this, they said company’s policy says all in-app charges are non-refundable. Having said that, the details of the refund program will be announced soon by Amazon itself.
Just like Amazon, FTC also went after Apple and Google accusing them of the same game. Later, Apple refunded more than $32 million to users in 2014, while in the same year Google paid around $19 million to the customers.
Thomas B. Pahl, acting director of the FTC’s Bureau of Consumer Protection, said, "This case demonstrates what should be a bedrock principle for all companies — you must get customers’ consent before you charge them. Consumers affected by Amazon’s practices can now be compensated for charges they didn’t expect or authorize."