Dive Brief:
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U.S. District Court Judge John C. Coughenour Monday rejected Amazon’s request to dismiss a Federal Trade Commission lawsuit alleging that the e-retailer sold in-app games to children without parental approval.
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Amazon has argued that its warnings regarding in-app purchases are adequate and that the FTC can’t prove that parents were billed without their knowledge.
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But Coughenour said that it is Amazon that must prove that parents were adequately informed and authorized the purchases. The ruling means the suit will go forward.
Dive Insight:
Some of the bills that kids racked up on their Kindle Fire tablets were hefty — some single purchases were $100 a pop. It's something that can make the blessed silence that comes with leaving a child happily alone with a device an exceedingly expensive proposition.
It’s not that uncommon a problem, either: Earlier this year Apple and Google each settled with the FTC, and Apple settled with a group of parents who said they were similarly billed without adequate warning. Under those rulings, both companies also have had to make changes that would allow parents greater control over in-app purchases. Looks like Amazon is next.
