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The Federal Trade Commission has announced that Amazon Inc. will be refunding money to customers whose children made unauthorized in-app purchases on “free” games.
If your child made in-app purchases without your permission between November 2011 and May 2016, you may be eligible to apply for an Amazon refund.
The FTC filed the Amazon lawsuit three years ago over concerns that Amazon had charged parents millions of dollars for unauthorized in-app purchases made by their children. The FTC also claimed that Amazon failed to provide adequate parental controls to prevent children from racking up in-app charges while playing games on smartphones and tablets.
According to the FTC lawsuit, many of the games available in the app store are free to download, but they allow users to pay real money to purchase virtual items within a game. These in-app charges reportedly range from 99 cents to nearly $100.
“Amazon began billing for in-app charges in November 2011, well after media reports about children incurring unauthorized charges in similar apps from other mobile app stores,” the FTC lawsuit alleged. “Amazon nonetheless often has failed to obtain parents’ or other account holders’ informed consent to in-app charges incurred by children.”
Thousands of Amazon customers reportedly complained about unauthorized in-app purchases made by their children, some of whom racked up hundreds of dollars in in-app charges.
Last month, the FTC and Amazon agreed to drop appeals related to a court’s determination last year that Amazon billed customers for unauthorized in-app charges incurred by children who used mobile apps downloaded through Amazon’s app store.
In 2016, the court found Amazon failed to make sure parents consented to the in-app purchases made by their children before billing them. The judge denied a request by the FTC for a permanent injunction that would prohibit Amazon from engaging in similar conduct in the future.
The FTC appealed the judge’s ruling regarding the injunction, and Amazon cross appealed the judge’s determination that the company violated the law. Amazon and the FTC decided to drop their appeals and allow the in-app purchase refund process to move forward.
More than $70 million in unauthorized in-app purchases will reportedly be eligible for refunds.
Amazon is not the only company to come under fire by the FTC for minors’ unauthorized in-app purchases. Apple and Google previously agreed to settle the FTC lawsuits and issue refunds to consumers.
Who’s Eligible
“If a child under 18 made in-app purchases without your permission between November 2011 and May 2016, you can apply for a refund.”
Potential Award
Varies.
The $70 million settlement fund is expected to cover all unauthorized in-app purchases made by children. The exact amount consumers receive will depend on the amount of unauthorized charges made to their account.
Proof of Purchase
Amazon is contacting consumers via email to let them know they are eligible for a refund. To apply for a refund, click on the link within the email or visit Amazon.com, log into your account and look in Message Center under “Important Messages.”
Consumers can also click here for more information about how to file a claim.
Claim Form Deadline
5/28/2018
Case Name
Federal Trade Commission v. Amazon.com Inc., Case No. 2:14-cv-01038, in the U.S. District Court for the Western District of Washington at Seattle
Settlement Website
www.ftc.gov/enforcement/cases-proceedings/refunds/amazon-refunds
or call Amazon at 866-216-1072
Class Counsel
The FTC is represented by:
Jason Adler
Heather Allen
Jane Ricci
Miya Tandon
Katharine Roller
Helen Wong
Laura Solis
Defense Counsel
Harry H. Schneider Jr.
David J. Burman and
Jeffrey M. Hanson
PERKINS COIE LLP
J. Douglas Baldridge
Danielle R. Foley
VENABLE LLP
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15 thoughts onAmazon Unauthorized In-App Purchases Settlement
can you please tell me how to file a claim ty
please tell me how I can file a claim. I tryed above click sending me to Amazon n telling me my password wrong when that’s the only password I use
What about Amazon Kindle unlimited… My kids downloaded this app. that continued monthly charges of $9.95 And was unsuccessful in trying to cancel the app. I ended up just canceling my card completely. Charges by then were just as bad as finance fees i accrued.
I had the same thing happen with the prime
They refunded my money but only for 2 years
I never asked for Prime
Never used it for movies games Maybe I need to look and see how many years they charged me I have been very sick on and off for 15 years
I also have been charged for PRIME when I never asked for it. They took $100. directly from my debit card! I couldn’t believe it. Then they argue with you. Unbelievable!
Also what about Google play in app purchases??
They are the one’s I am having problems with.
I see apps purchased, by my grandkids and Amazon says I’m not qualified… However I called a rep and stated my grandsons age 6 and 7 downloaded apps and they removed them
I was charged over 200+ for amazon app its self. Which I did not authorize and some apps that i did not purchase as well.
I had to pay over draft fees as well.
Those of us to had a lot of money taken through fraud and kids, Amazon has locked our accounts and refuses to allow us access. I went through the Consumer Protection Agency and was still told I violated there agreement so I am not allowed to use Amazon. Even though I have 4 Kindles and 3 Echos. Amazon said too bad they are useless.$900 worth of electronics just sitting because someone else ran up my credit cards and I EXPECTED a refund. Amazon is nothing but a THIEF. You put money in an account and they take it. They also have taken entire gift cards. A real shady Business. They canceled my account and yet they were still charging my credit card for Prime. I never signed up for Prime. When I called them I was told that I had to speak to an account specialist. But, that never happens.
Why are they relying on Amazon to send emails to people this class action suit affects. My nephew ordered 4 games (unauthorized) in 2012. I have not received an email (I just happened to look at this site) and I received a message that this lawsuit does not pertain to me. Although, i can clearly see the app purchases in my order history.
You can try contacting the FTC with your concerns: https://www.ftc.gov/contact.
I deleted my account due to them taking over 150.00 out of my account and had balanced checks. Now it is saying I dont have a account what do I do?