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Consumers in line for $70 million in refunds after Amazon, FTC settlement

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Amazon was liable for in-app purchases children made over the course of about five years without their parents’ authorization.

Amazon.com Inc. can begin refunding as much as $70 million to consumers for in-app purchases made by children, following the end of a legal battle with the Federal Trade Commission.

The FTC on Tuesday said it and the Seattle-based retailer agreed to end appeals related to a federal-court decision last year that found Amazon AMZN, +1.72% was liable for in-app purchases children made over the course of about five years without their parents’ authorization due to the lack of sufficient safeguards.

The court also ruled last year that Amazon had implemented sufficient safeguards since the case began, rejecting the FTC’s attempt to require more consent from Amazon customers. Both parties appealed, and the court order mandating Amazon refund those payments was stayed.

The FTC said that the process of refunding customers for eligible transactions made between November 2011 and May 2016 will begin shortly. An Amazon spokesman declined to comment.

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