Skip to main content

Amazon has begun issuing refunds for kids’ in-app purchases, FTC says

amazon refund in app purchases lifestyle
Marcel De Grijs/123RF
There was a time, not so long ago, when kids could pretty easily rack up a hefty bill with unauthorized in-app purchases on their parents’ mobile devices, Mom and Dad only learning about it when they saw their credit card bill. Indeed, the ease with which such transactions could be made ended up getting several tech giants into big trouble with the Federal Trade Commission (FTC).

While Apple and Google agreed to reimburse parents to the tune of millions of dollars several years ago, Amazon resisted the FTC’s demands to cough up — until last April.

Amazon finally agreed weeks ago to refund customers for unauthorized purchases made through its App Store between November 2011 and May 2016. Now, the FTC has announced the online retailer has begun compensating those affected.

If you’re one such customer, Amazon should have reached out to you by now. If you haven’t been contacted, you can visit this link to view your in-app purchase history to determine if you’re eligible. The refund process takes place entirely online and customers have until May 28, 2018 to submit claims. The FTC instructs those with questions to call Amazon at 866-216-1072.

The refund program is reportedly worth a colossal $70 million. Last year, a judge rejected Amazon’s request to refund the purchases in the form of gift cards or online credits, so customers can expect to receive payments direct to their credit or debit card.

“This case demonstrates what should be a bedrock principle for all companies — you must get customers’ consent before you charge them,” Thomas B. Pahl, acting director of the FTC’s Bureau of Consumer Protection, said in a release. “Consumers affected by Amazon’s practices can now be compensated for charges they didn’t expect or authorize.”

This story began six years ago when Amazon started allowing in-app purchases, with 30 percent of each transaction going straight to the company.

In the early days there were no protections in place so that children, or anyone for that matter, could easily make in-app purchases without the permission of the account holder.

The FTC eventually went after Amazon — as well as Apple and Google — in an effort to get it to offer refunds to customers for any unauthorized purchases.

“Amazon’s in-app system allowed children to incur unlimited charges on their parents’ accounts without permission,” the FTC said in 2014, adding that “even Amazon’s own employees recognized the serious problem its process created.” However, the company insisted it was making refunds in relevant cases and was also rolling out safeguards to improve the operation of its app store.

In April 2016, the court examining the case agreed with the commission, describing Amazon’s system for informing customers about in-app charges as insufficient.

Whereas Amazon has until recently been appealing against orders to refund customers, other tech giants settled some time ago. Apple agreed to refund more than $32 million to users of its App Store in 2014, while in the same year Google started paying back $19 million to affected Play Store customers.

All three companies have since overhauled their respective stores to make it much harder for unauthorized in-app purchases to take place.

Article originally published by Trevor Mogg on 04-05-2017. Updated on 05-30-2017 by Adam Ismail: Added news that Amazon has begun the refund process.

Editors' Recommendations

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Don’t buy this new Motorola phone — get this other one instead
Renders of the Moto G 5G (2024) and Moto G Power 5G (2024).

the Moto G 5G (left) and Moto G Power 5G Digital Trends

Budget phones can slip under the radar when shiny, powerful flagships launch. But if you're in the market for a smartphone that gets the job done and won't blow a four-figure hole in your bank balance, then a great budget smartphone is the way to go.

Read more
Get 32% off the cellular model of the iPad Pro 12.9 this weekend
The iPad Pro on a desk next to a stylus and AirPods.

If you've been thinking about getting the iPad Pro with cellular connectivity but you've been hoping to buy the tablet from iPad deals for a discount, this may be what you've been waiting for -- a 32% discount from Amazon's Woot on the 12.9-inch, Wi-Fi + Cellular model of the 2021 Apple iPad Pro with 128GB of storage. From $1,199, it's down to just $810, which is a steal price for this device with savings of $389. However, while there are still several days left on this offer, it's highly recommended that you proceed with the purchase immediately because there's a chance that stocks don't last that long.

Why you should buy the 2021 Apple iPad Pro 12.9
It's not the latest version of Apple's top-of-the-line tablet -- the honor goes to the 2022 Apple iPad Pro -- but the 2021 Apple iPad Pro is still a pretty powerful device by today's standards. That's because it's equipped with Apple's M1 chip, which promises fantastic speed and excellent graphics when you're working on your multimedia projects, multitasking between several apps, or playing console-level games. With its 12.9-inch Liquid Retina XDR touchscreen, you'll enjoy high-brightness and high-contrast content, and its mini-LED display provides deeper black levels and more vibrant colors.

Read more
Samsung Galaxy A55 vs. A54: all the big changes, explained
Renders of the Samsung Galaxy A55 next to the Galaxy A54.

Galaxy A55 (left) and Galaxy A54 Digital Trends

Samsung has been on a roll with new phone releases in 2024. At the end of January, Samsung released the flagship Galaxy S24 lineup. It's fantastic, but not everyone can afford the latest and greatest flagship. Thankfully, Samsung also makes budget-friendly alternatives, and that’s the appeal of the new Galaxy A55.

Read more