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Amazon to partially reimburse parents for $86 million in unauthorized in-app purchases

Amazon has been ordered to partially reimburse the parents of children that made $86 million dollars worth of unauthorized in-app payments.

Published onNovember 11, 2016


A federal judge has ordered Amazon to partially reimburse the parents of children that made unauthorized in-app purchases (IAPs) to the tune of $86 million. Amazon was found liable in the case more than six months ago, but the verdict has only just been handed down by U.S. District Judge John Coughenour.

Amazon was accused of making it too easy for children to make IAPs without parental permission as far back as mid-2014 in games like “Ice Age Village” and “Pet Shop Story”. Following this verdict, Amazon will be required to establish a notice-and-claims process, informing parents of their eligibility for reimbursement and issuing refunds.

State of IAPs: iOS users spend 2.5x more on in-app purchases than Android users

The Federal Trade Commission (FTC) had originally requested damages of $26.5 million, but Judge Coughenour claimed that figure was too high. The judge also denied Amazon’s request to issue the refunds as Amazon gift cards. The year-long refund process process will begin in early 2017.

With this verdict, Amazon joins the ranks of other tech giants like Apple and Google, that have also faced the wrath of the FTC in the past over unauthorized charges. In 2014, Apple was ordered to repay over $32 million dollars and Google coughing up around $19 million.

Have you ever had an unauthorized IAP made on your account?

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