Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Cloud Computing
Real-time info services with Neustar
Average Rating:
Rate this article:  
Amazon Vows To Fight FTC on Kids In-App Purchases
Amazon Vows To Fight FTC on Kids In-App Purchases

 
July 5, 2014 8:09AM

    Bookmark and Share
Online retailer Amazon is fighting U.S. regulators' demands that it pay a penalty over its policies on unauthorized purchases made by children on smartphone applications. Amazon says it has already refunded money to parents who complained, and that its parental controls go beyond what the FTC recently required from Apple.
 



Amazon says that it is prepared to go to court against the Federal Trade Commission to defend itself against charges that it has not done enough to prevent children from making unauthorized in-app purchases.

The FTC alleged in a draft lawsuit released by Amazon that unauthorized charges by children on Amazon tablets have amounted to millions of dollars.

Seattle-based Amazon.com Inc. said in a letter Tuesday to FTC Chairwoman Edith Ramirez that it had already refunded money to parents who complained. It also said its parental controls go beyond what the FTC required from Apple when it imposed a $32.5 million fine on the company in January over a similar matter.

Amazon's Kindle Free Time app can limit how much time children spend on Kindle tablets as well as require a personal identification number for in-app purchases, said Amazon spokesman Craig Berman.

"Parents can say -- at any time, for every purchase that's made -- that a PIN is required," he said.

By not agreeing to a settlement with the FTC, the company faces a potential lawsuit by the FTC in federal district court.

Apple complained when the FTC announced its settlement with the company in January.

CEO Tim Cook explained to employees in a memo that the settlement did not require the company to do anything it wasn't doing already but he added that it "smacked of double jeopardy" because Apple had already settled a similar class-action lawsuit in which it agreed to refunds.

The FTC wouldn't comment on whether it is investigating Amazon's in-app purchase policies, but said in a statement: "The Commission is focused on ensuring that companies comply with the fundamental principle that consumers should not be made to pay for something they did not authorize."

In the FTC's draft complaint, the commission said that after Amazon began billing for in-app purchase in November 2011, an Amazon Appstore manager described the level of complaints about unauthorized purchases by children as at "near house on fire" levels.

It said Amazon began requiring password entry for in-app charges above $20 in March 2012, and then for all purchases in early 2013. However, for smaller purchases, entering a password once left open a billing window of 15 minutes to an hour in which new charges wouldn't require a password, the FTC said in the complaint.

Prompts from kid-targeted games like "Pet Shop Story" would sometimes not give a price for purchases, the FTC said. Sometimes the purchase prompts from games like "Tap Zoo" were easily mistaken for those using "coins," ''stars," and other virtual currency, it said.
 


© 2014 Associated Press/AP Online under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Cloud Computing
1.   Oracle To Buy TOA Technologies
2.   Oracle Releases a Slew of Upgrades
3.   Cloud Wars: AWS vs. Microsoft, IBM
4.   Yammer Moved to Office 365
5.   IBM, California Partner in the Cloud


advertisement
Amazon Intros Zocalo Storage Service
Online storage and sharing for business.
Average Rating:
Avaya Pressing Hard on Cloud-Based UC
Provides easier, faster provisioning.
Average Rating:
Cisco Woos More Devs with DevNet
To create new network-aware apps.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
BlackBerry Messenger Now Available on Windows Phone
BlackBerry's free Messenger chatting and voice app is out of beta and widely available for Windows Phone users, the company said. BBM offers secure messaging, Groups, Voice, Channels and more.
 
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.