Amazon.com Inc.’s share price up, ready to oppose the FTC over mobile application purchases

Amazon.com Inc. said that it is prepared to oppose to the Federal Trade Commission if it files a lawsuit over claims that the company did not get customer approval over its policies on parental control and purchases made by children on several smartphone applications. The Federal Trade Commission was permitted to file a lawsuit against the company in case Amazon does not agree to certain terms.

“It’s an understatement to say that this response is deeply disappointing. No one is more focused on creating a great experience for customers than Amazon,” the company stated, cited by Bloomberg.

According to displayed documents, the Federal Trade Commission seems to be trying to make Amazon accept terms that are similar to the ones accepted by Apple Inc., in relation to the so-called in-app acquisitions earlier in 2014. The commission considers that the company needs to make the notices more prominent and require special passwords in order to prevent such cases.

“When customers told us their kids had made purchases they didnt want, we refunded those purchases,” Andrew DeVore, an associate general counsel at Amazon, said in a letter to the Commission, which was cited by the Wall Street Journal. Mr. DeVore also made it clear that the application store of the company included “prominent notice of in-app purchasing, effective parental controls and real-time notice of every in-app purchase”.

The FTC declined to comment, saying it “is focused on ensuring that companies comply with the fundamental principle that consumers should not be made to pay for something they did not authorize,” Reuters reported.

Amazon.com Inc. was 0.14% up to close at 332.85 dollars per share yesterday, marking a one-year change of +17.31%. According to information published on CNN Money, the 40 analysts offering 12-month price forecasts for Amazon.com Inc. have a median target of 422.50, with a high estimate of 500.00 and a low estimate of 330.00. The median estimate represents a +26.93% increase from the last price of 332.85.