According to Federal Trade Commission (FTC) Amazon’s apps make it too easy for kids to purchase virtual games with real money within game apps. They are costing their parents enormous amounts of money that parents only see once they receive the bill.
The FTC believes that Amazon is allowing this to happen costing account holders hundreds of extra dollars at a time. There is a lawsuit against them wanting all customers to be refunded for their children’s mistakes. They claim the Amazon app does specify what is gaming with virtual money from buying with real money. Amazon makes around 30 percent in revenue from these gaming apps.
Amazon’s associate general counsel, Andrew DeVore, wrote to FTC Chairwoman Edith Ramirez. Amazon argues that its current practices on in-app purchases already meet the conditions outlined in the Apple settlement. “In-app purchasing was and remains a new and rapidly evolving segment, and we have consistently improved the customer experience in response to data”. In 2012 they did establish that any purchase over $20 must require a password but it just stays on by default.
Why it’s Hot: I find it interesting to why Amazon just did not put a password on the app every time you buy something. That way kids cannot just go on their parents phone and purchase random gaming apps. Many Amazon account holders are being charged due to this issue which gives customers a negative perception of Amazon. Overall it will be interesting to see how Amazon reacts to this lawsuit and what the outcome will be.