The U.S. Federal Trade Commission recently scored a big win in its crusade against unauthorized in-app charges, convincing a judge that Amazon.com Inc.’s billing practices for apps popular with children were deceptive. Experts say the FTC won’t hesitate to go after other targets, but that there are steps app providers can take to minimize their potential liability.
In a partially redacted ruling issued on April 26, U.S. District Judge John Coughenour in Seattle found Amazon’s billing practices for online games and other apps constituted an “unfair or deceptive” practice under the Federal Trade Commission Act. The judge ruled that Amazon is liable for in-app purchases made by children without their parents’ approval between November 2011 and June 2014, when Amazon added more thorough disclosures and prompts. (The judge will calculate damages in a later ruling.)
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