Amazon refusing to settle with FTC over in-app purchases made by children

Amazon is prepared to fight against the Federal Trade Commission's demands that it comply with its rules for labeling programs that use in-app purchases, reports The Wall Street Journal.

Earlier this year, the FTC reached a settlement with Apple in which the company agreed to pay $32.5 million after the FTC stated the company failed to inform parents on how to prevent children from making unauthorized in-app purchases. Additionally, Apple tweaked the App Store's payment system to require explicit parental consent for the purchase of virtual goods.

Yesterday, Amazon sent the FTC a letter warning that it would not be reaching a similar settlement, and that it was prepared to fight back against the FTC. Amazon states it feels it already has a decent system to prevent children from making unauthorized purchases; the company believes it clearly indicates which apps and games include in-game stores and microtransaction systems, as well as offers parental controls that can prevent these purchases from happening.

"In-app purchasing was and remains a new and rapidly evolving segment, and we have consistently improved the customer experience in response to data," reads the letter by vice president and associate general counsel Andrew C. DeVore. "That constant iteration on behalf of customers has produced not only an in-app purchasing experience that already meets the requirements of the Apple consent order, but the development of the industry-leading parental controls like Kindle Free Time. We believe the Commission should promote that kind of iteration on behalf of customers."

Amazon called recent talks held with the FTC "constructive" but an agreement has not been reached and the company will continue to defend its ways in court, if necessary.

Amazon is preparing to launch its own cell phone line soon, the Fire Phone, which will make use of the company's App Store and ecosystem.

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