On recent Thursday, Amazon.com company is ordered by the Federal Judge in USA. In the order Federal judge, direct the amazon to refund the money of the parents whose children made in-app purchase that also without gaining permission. But this order also reject the request of US regulator who have request for the paymen $26.5 million lump-sum.
US District Judge John Coughenour, in Amazon's hometown of Seattle, issued his order more than six months after finding the online retailer liable, in a case brought by the Federal Trade Commission. In july 14, FTC find Amazon accused of making a easy prosses of bill payment . these is that easy even a kid can pay the bill while he is playing games such as "Pet Shop Story" and "Ice Age Village" on mobilephones. This leads to the unauthorized charges of $86 million and Rs. 578 crores in Indian Rupees.
Coughenour said this approach "removes the uncertainty of the proper lump sum amount that the parties have vigorously disputed. Moreover, it accomplishes the goals of placing liability on Amazon and refunding eligible customers."
Coughenour called the FTC's $26.5 million (roughly Rs. 178 crores) damages request "too high," agreeing with Amazon that it might have taken into account failed password attempts unrelated to unauthorized purchases by children.
But the judge rejected Amazon's request to issue refunds in the form of gift cards, saying the company would "undoubtedly recapture some of the profits that are at issue."
This similar problem also happened with the Apple Inc and Google Inc. due to the order of FTC, Apple have to refund around $32.5 million and Google have to return $19 million. All three companies have improved their password and other controls to help thwart unauthorized charges.
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