Amazon pushes back on FTC’s in-app purchase requests
Amazon is reportedly fighting back against a request from the Federal Trade Commission to tighten rules on in-app purchases.
According to The Wall Street Journal[1], the FTC wants Amazon to require passwords for purchases within apps, simplify the process for earning refunds and make warnings more visible.
In a letter obtained by the Journal, Amazon says parental controls on devices such as Kindle Fire tablets are “effective” and include “real-time notice” on all in-app purchases.
Amazon might face a lawsuit from the FTC if they don’t comply.
App stores such as those run by Amazon, Apple and Google feature applications that let users make purchases from within the service. Prices for these purchases range from 99 cents to $100.
Apple was named in a FTC complaint over in-app purchases after parents complained their children were making unauthorized purchases on smartphones and tablets.
In January, Apple reached a $32.5 million settlement[2] with the FTC over in-app purchases. The settlement requires Apple to offer full refunds and update billing practices to ensure it has consent from users before a purchase is made.
Meanwhile, Amazon continues to expand its reach in the mobile market. Last month, the retailing giant unveiled the Fire Phone, which launches later this month.
Follow Brett Molina on Twitter: @brettmolina23[3].
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References
- ^ http://online.wsj.com/articles/amazon-resisting-ftc-on-in-app-purchases-by-children-1404317383 (online.wsj.com)
- ^ http://www.usatoday.com/story/tech/2014/01/15/apple-ftc-settlement/4491365/ (rssfeeds.usatoday.com)
- ^ http://twitter.com/brettmolina23 (twitter.com)