Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Amazon liable for billing for children’s unauthorized in-app charges, (Apr 27, 2016)

By Michael Menzhuber, J.D., LL.M.

The FTC’s request for summary judgment, in its lawsuit against Amazon, Inc. for billing consumers for unauthorized in-app charges incurred by children, has been granted, the agency announced today.

Citing the fact that Amazon’s disclosures were not sufficient to inform consumers about the possibility of in-app charges within otherwise “free” apps, the federal judge’s order finds that the company received many consumer complaints about the surprise in-app charges.

The judge’s order calls for further representations from the FTC and Amazon regarding the precise amount of monetary relief Amazon owes customers as a result of the unauthorized in-app charges; and granted partial summary judgment requested by Amazon regarding injunctive relief.

The FTC’s complaint against Amazon was first filed in July 2014. The FTC reached settlements with Apple, Inc. and Google, Inc. that required the companies to fully refund consumers for unauthorized in-app charges incurred by children, resulting in refunds to consumers totaling over $50 million.

“We are pleased the federal judge found Amazon liable for unfairly billing consumers for unauthorized in-app purchases by children,” said FTC Chairwoman Edith Ramirez. “We look forward to making a case for full refunds to consumers as a result of Amazon’s actions.”

News: ConsumerProtection FederalTradeCommissionNews