Court rules Amazon unfairly billed for kids’ app purchases

A federal court on Tuesday ruled Amazon for years unfairly billed customers for purchases made through its app store, especially when those purchases were made by children. 

Judge John Coughenour in Seattle ruled that Amazon until 2014 violated a section of law that prevents “unfair or deceptive” acts or practices by not properly disclosing when in-app purchases were required — specifically when a child made the purchase on a parent’s or other person’s device. 

{mosads}The Federal Trade Commission filed the suit after starting an investigation in 2012. The judge granted the FTC summary judgment on the charges, but did not decide how much Amazon will have to pay in damages.

The FTC provided an undisclosed estimate of damages, but the judge asked for further review after Amazon called the number speculative. Large portions of the judge’s ruling were redacted to remove mention of the specific estimate. 

The FTC has already settled similar charges with Google and Apple, which run the most recognizable app stores in the United States. Both firms will pay a combined total of about $50 million in refunds.  

Amazon’s damages could be smaller, given its store’s relative size. Its apps can only be downloaded on its Kindle Fire tablets or on smartphones and tablets running the Android operating system. 

Since the FTC’s initial investigation started in 2012, Amazon has taken a number of steps to better inform customers about in-app purchases. 

The company now features the label “InApp Purchasing” on any app that could require purchases. Users are also given the option to require a password for each new purchase. 

Some outdated Kindles still allow small in-app purchases with no authorization, but the court found that was not enough to impose an injunction on the company to immediately halt the practice.