(AMZN) Ordered To Refund Children’s In-App Purchases

Posted on was ordered by a federal judge on Thursday to set up a 12-month long process that wil reimburse parents whose children made in-app purchases without the parents’ permission.

U.S. District Judge John Coughenour rejected a U.S. regulator’s request for a $26.5 million lump-sum payout and opted for the year long process instead.

The judge’s order came six months after finding that Amazon was liable, in a case brought forth by the Federal Trade Commission.

Amazon must set up a notice-and-claims process that will begin in early 2017, and will alert parents to their eligibility for refunds and will then reimburse them.

According to Judge Coughenour, his oder “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.”

Disclaimer: We have no position in Amazon Inc. (NASDAQ: AMZN) and have not been compensated for this article.