Amazon Unauthorized In-App Purchases Settlement

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

CLICK HERE 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