The FTC in the U.S. brought a case against Amazon for ‘aiding the prescriptions on the restrictions of purchase.’ AMAZON repelled saying, “It hurts the driving force to promote IT enterprises.”
AMAZON, an online commercial enterprise, is suspected of assisting in the unauthorized use of accounts by children which belonged to their parents.
On the July 13thforeign news agencies such as the Wall Street Journal and Financial Times reported that The FTC sued AMAZON in Seattle Federal District Tribunal.
The FTC pointed out that AMAZON violated the restriction of the federal government that when children purchase something through a mobile application, they should get the approval of their parents, when they managed to purchase something without the permission of a parents, a full refund should be made. FTC pointed again that AMAZON earned a sales of over several million dollars in this manner illegality, and the parents’ dissatisfaction was rises due to their children’s app purchases. Some children even made purchases of up to several hundred dollars not knowing exactly what the payment was for.
Edice Ramirez, the chairman of FTC, said, “Even the employees of AMAZON realize the seriousness of the matter,” and “We will request AMAZON to set up a system and an agreement that stops children from purchasing things without the permission of parents.” Hereupon AMAZON strongly resisted saying, “The FTC is acting in a way that stifles future growth potential of IT enterprises.”
AMAZON explained that they gave refunds to parents that protested, and took measures such as making children input a password in time of an app purchase since last month when they received complaints.
Mobile app. shopping is a major source of the sale for the electronic commercial transaction enterprises. The users of mobile apps can buy game items and music through the app stores. Rates are between 1 and 5 dollars. AMAZON gets 30% commission whenever there is a purchase. Previously The FTC imposed a fine on APPLE for a similar reason. APPLE repaid 32,500,000 dollars (around 32 billion 948.5 million Won) to parents who were wrongly charged.