FTC, Amazon Withdraw Appeals of In-App Charges Ruling

The FTC and Amazon agreed to withdraw appeals of a federal court decision last year saying the company illegally charged parents for in-app purchases made by children who didn't have parents’ informed consent (see 1604270013). Commissioners voted 2-0 to withdraw the FTC appeal, the agency said in a Tuesday news release. Amazon had appealed the ruling that it violated the law, and the FTC appealed the court’s decision to deny an injunction stopping the website from similar conduct in the future. Ending the litigation allows Amazon to start providing refunds for about $70 million in eligible in-app charges made between November 2011 and May 2016, the FTC said. “This case demonstrates what should be a bedrock principle for all companies -- you must get customers’ consent before you charge them,” said Consumer Protection Bureau acting Director Thomas Pahl. Amazon didn’t comment.