Amazon is refunding up to $70M in app purchases made by kids

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Last month, the FTC and Amazon agreed to end their litigation, clearing the way for the refunds to begin.

U.S. District Judge John Coughenour stated in his order, "While entering a password linking her Amazon account to a new device, a reasonable consumer unaware of the possibility of in-app purchases would not assume she was authorizing unforeseen charges".

In the court documents, it was revealed: "a child may be prompted to use or acquire seemingly fictitious currency, including a 'boatload of doughnuts, a can of stars and bars of gold, ' but in reality the child is making an in-app purchase using real money".

As per FTC, parents can apply for a refund if their child, under 18-years-old, has made an unauthorized in-app purchase between November of 2011 and May of 2016.

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Many parents let kids play games on phones or tablets, but don't expect them to be racking up a bill.

Although many apps in marketplaces like Amazon or Apple's app stores are free to download, users have the option to make purchases within the app ranging from as little as 99 cents to $100.

Amazon isn't the first highflying tech giant to find itself in the FTC's crosshairs over unauthorized in-app purchases.

The refund process is simple.

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You are able to complete your refund request entirely online without needing to call Amazon or send anything through the mail.

Parents of kids who made unauthorized purchases within app hosted by Amazon will start seeing refunds.

Amazon will review your refund request and may contact you if additional information is needed.

The commission sued Amazon in 2014, alleging that it allowed children to make purchases even though the company knew they were doing it without parental consent. Only four other US -listed companies have shares that trade above $1,000.

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