iphoneEcommerce giant Amazon was sued by the US Federal Trade Commission (FTC) for allowing children to buy virtual items on mobile apps without getting the consent of the parents.

In-app business

The US regulator said Amazon did not make it clear to parents permitting the downloads that the users would spend in-app charges without controls.

“Amazon’s in-app system allowed children to incur unlimited charges on their parents’ accounts without permission,” said FTC chair Edith Ramirez in a statement. “Even Amazon’s own employees recognized the serious problem its process created.”

The FTC asked the court for fines and refunds to parents who were charged millions of dollars.

Deceptive billing

Meanwhile, Amazon responded to the accusations, saying it was “deeply disappointed” by the FTC’s demands.

Parents began complaining about unauthorized charges soon after Amazon began collecting in-app payments.

The company refused a settlement offer and said in a statement that it would not acknowledge stricter controls.