The lawsuit is an expected result of Amazon's denial of FTC-issued requests to change its in-app purchase policies. To meet FTC guidelines, Amazon would need to add another layer of password protection and overhaul its refund policies in order to curb in-app purchases made by children without parental permission. In a recent letter to the FTC, Amazon noted that it prefers to "defend our approach in court," rather than change its policies.
The FTC's lawsuit seeks refunds for affected customers and a ban on unlimited purchases within Amazon apps. Apple issued more than $32.5 million in refunds to App Store customers following a similar FTC complaint earlier this year.