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Amazon ready to fight the FTC over in app purchases

News by Luke Jones on Thursday July 03, 2014.

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Amazon FTC in app purchases
Amazon FTC in app purchases

Amazon is risking the wrath of the Federal Trade Commission (FTC) over the company's policies regarding in app purchases, and it seems the online retailer turned hardware maker doesn't care. The FTC has asked Amazon to update its policies on the already controversial in-app purchase policy, but the company is ignoring the request and could be willing to fight its corner in the courts.

The consumer protection body is the most powerful of its kind in the US and has federal jurisdiction, running the rule over potential products and retail practices. The FTC says Amazon should implement passwords for all in app purchases, while making added charges more clear and making the refund process simpler. Amazon has fallen foul of the organization because the FTC received thousands of complaints throughout 2013 from disgruntled parents whose children had made purchases within apps without having to get through any password walls.

Amazon insists that its policies are fine as they are and the company says it has refunded any customers who have complained about wrong purchases. The company is so adamant about its stance that it is willing to let the FTC take it to court, a move that could cost Amazon some pretty hefty fines and added regulation.

While Amazon may think it is in a position to fight this, the biggest tech company of them all couldn't do it. Apple was forced to take similar measures to the ones the FTC is asking of Amazon, and even Cupertino bended to the will of the body eventually. Besides, it just seems like obvious practice to make users write their password before making in app purchases, the slight inconvenience can make a difference in the long run, especially to parents.

Although, it was not until June that Amazon implemented any kind of authentication for purchases, so the company has sort of been asking for this.

source: Wall Street Journal

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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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