Amazon.com, Inc. (NASDAQ:AMZN) has billed parents and other individuals for millions of dollars over unauthorized in-app charges incurred by children, the Federal Trade Commission (FTC) claimed in a complaint filed against the online retailer in federal court Thursday. According to the FTC, Amazon has violated the FTC Act by billing parents and other Amazon account holders for charges incurred by their children without the permission of the parent or other account holder.
The complaint alleges that when Amazon introduced in-app charges to the Amazon Appstore in November 2011, there were no password requirements of any kind on in-app charges, including in games and apps that appeal to children. According to the complaint, this left parents to foot the bill for charges they didn’t authorize.
The FTC is seeking a court order that would require Amazon to refund customers for the unauthorized charges and would permanently ban the company from billing parents and other account holders for in-app charges without their consent. According to FTC’s complaint, Amazon keeps 30% of all in-app charges. In afternoon trade, AMZN shares were off 0.2% to $329.27.
Netflix, Inc. (NASDAQ:NFLX) original programs “House of Cards” and “Orange is the New Black” were given 25 of the subscriber network’s 31 Emmy nominations, including Outstanding Drama Series and Outstanding Comedy Series.
The Emmy nods are validation for the network which launched original programming 2 years ago with the premier of “Lillyhammer” in a strategy lure in new subscribers and compete with cable networks like HBO (part of Time Warner Cable TWC).
In related news, Netflix announced on Wednesday that acquired exclusive rights for CBS’s (CBS) drama “Zoo”, based on the bestselling novel by James Patterson. It will be made available to Netflix subscribers next summer after running on CBS. Shares of NFLX are marginally higher at $444.14 with a 52-week range of $234.87 to $475.87.
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