Amazon is reportedly set to fight its corner in a potential legal dispute with the Federal Trade Commission (FTC) related to in-app purchases made by children.
Amazon offers a range of apps via its Appstore, which is available internationally, and also has its own virtual currency, called Coins. The company also recently unveiled its first smartphone, as it looks to increase its influence in the mobile space.
The Wall Street Journal said the FTC is looking at fines, additional record-keeping, and disclosure requirements over a 20 year period.
It also told Amazon that notices regarding in-app purchases needed to be made more prominent, that passwords should be required for all buys, and that refunds should be made simpler and easier.
The draft complaint asserts that there have been thousands of complaints related to millions of dollars of in-app purchases made since 2011, with Amazon only having changed its purchase policies last month.
Customers looking for refunds apparently face “significant hurdles” in this process.
According to Reuters, the online retailer argued that its response to complaints about in-app purchases made by children have already met or exceeded the requirements of Apple’s terms, the iPhone maker having previously had an in-app related run-in with the FTC.
The hardline approach of the FTC reluctance of the FTC to do a deal means that Amazon has “no choice but to defend our approach in court”, Andrew DeVore, associate general counsel, wrote.