Thursday, 3 July 2014

Amazon refuses to settle with FTC over in-app purchases, says it's ready for legal fight




Amazon won't submit to the FTC's demands over in-app purchases made by children. Yesterday, the company sent this letter to the FTC warning that it's prepared to engage the commission in a courtroom fight over the issue. Bowing to the FTC's wishes would require Amazon to pay significant fines and reach a settlement modeled after the one Apple announced earlier this year. In January, CEO Tim Cook said his company decided against "a long and distracting legal fight" with the FTC, instead choosing to pay out a total of $32.5 million to 37,000 customers who claimed that their kids had made in-app purchases without permission. Apple also put in place new App Store safeguards that require explicit parental consent when buying virtual goods.
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