Amazon has to start refunding $US70 million for kids' 'accidental' in-app purchases

Photo: Mario Tama/Getty Images.

The US Federal Trade Commission and Amazon have agreed to end a legal case and the online retail giant will start paying back up to $US70 million worth of in-app purchases.

Details of the refund program will be revealed “shortly”. The case has been running since October 2014, when the FTC told Amazon it wasn’t doing enough to warn parents that the free apps their child was using could be used to rack up purchases.

It filed a case and last year, after deciding Amazon hadn’t taken enough heed of the warning, a federal judge found Amazon was liable for unfairly billing consumers.

The court said Amazon had failed to implement a system by which children had to get their parents’ consent to accept in-app charges.

Today, Amazon and the FTC agreed to end all appeals related to that finding and more than $US70 million in charges incurred between November 2011 and May 2016 are eligible for refunds.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

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