Citing tighter control for parents than rival Apple, Amazon states in a letter to the FTC that it shouldn't have to settle with families whose kids have loaded up on in-app purchases made via the online retailer.
Apple came to terms with the Federal Trade Commission in January, agreeing to refund $32.5 million to parents who were charged for in-app purchases made by their kids. Amazon reportedly believes it has refunded enough to complainants to resolve the grievances.
Amazon filed a July 1 letter, hosted by CNET, with the FTC, stating the company's disappointment that the commission was seeking to apply to it the same precedence established with Apple's January 2014 settlement with consumers on in-app purchases.
In-app purchases are charged to a registered credit card and cover extra services a company charges for after a free game is downloaded.
"No one is more focused on creating a great experience for customers than Amazon, and in that respect we are completely aligned with the commission's goals," stated Amazon. "Pursuing litigation against a company whose practices were lawful from the outset and that already meet or exceed the requirements of the Apple consent order makes no sense, and is an unfortunate misallocation of the commission's resources."
The FTC stated Amazon only changed its in policy on in-app purchases in June of 2014 and alleged that parents encountered unnecessary hurdles when seeking to receive refunds for unwanted purchases.
"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," stated the FTC.
Amazon countered the FTC's allegation in its July 1 letter by stating that its AppStore complied with the laws since it launched. In the letter, Amazon stated that its response to complaints and its mechanisms for preventing in-app purchases were both sufficient.
"And as we have made clear from the outset of your inquiry, our experience at launch was responsible, customer-focused, and lawful, including prominent notice of in-app purchasing, effective parental controls, real-time notice of every in-app purchase, and world-class customer services," stated Amazon's letter.
In-app purchases have been a way to make money off software that have been increasing. Users are often attracted to apps that are free, but find that it's difficult without purchases to make significant progression through games using the limited features of free software.
The purchase of in-app currency can drive up the cost of playing a "free" game well beyond the price of comparable, premium software. The accrual of in-app purchases that parents have complained about reportedly range from 99 cents to $100.
