The Federal Trade Commission (FTC) is suing Amazon over unauthorized in-app purchases. The lawsuit seeks a court order that would require Amazon to refund the parents whose children purchased in-app items without permission from the account holder. This situation is similar to the one that Apple found itself if last year, which they eventually settled earlier this year.
The FTC complaint addresses a number of issues. The commission says that Amazon left account holders open to unauthorized charges at the Appstore's launch in 2011. Though this policy was updated in March 2012 with the addition of a password requirement, a password was only required for purchases of $20 or more. Additionally, the FTC complaint says kids games often encourage children to get in-game items, sometimes by spending real money.
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Source: Federal Trade Commission