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Amazon Found Liable for Charges Incurred by Kids Using Apps

Amazon Found Liable for Charges Incurred by Kids Using Apps
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Amazon.com is liable for billing parents for in-app purchases that their children made without permission, a federal judge has ruled.

Judge John Coughenour of the U.S. District Court for the Western District of Washington on Tuesday granted the Federal Trade Commission's motion for summary judgment on liability in a fight between Amazon and the agency over the unauthorized purchases.

The judge denied the FTC's request for an injunction, and said he would not decide on a remedy yet.

The FTC said it would press for full refunds for affected Amazon customers.

Amazon did not immediately respond to requests for comment.

The FTC had sued Amazon in 2014, alleging that the company failed to make proper disclosures to parents regarding purchases made by their children while using apps such as "Pet Shop Story."

Amazon has made changes in how in-app purchases are made since the FTC began probing the issue, the court said.

"The only potential ongoing violation of the FTC Act alleged is the fact that Amazon customers are still billed for in-app purchases under $1 without authorization on First Generation Kindle devices. The First Generation Kindle has not been sold since August 2012," Coughenour said in his ruling.

(Reporting by Diane Bartz; Editing by Meredith Mazzilli and David Gregorio)

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