NEW YORK (TheStreet) --Amazon.com Inc. (AMZN) was sued by the Federal Trade Commission over allegations the online retailer didn't get consumer consent regarding the purchases of mobile-apps by children, Bloomberg reports.
Amazon said in a letter sent to the agency that the FTC was looking to name terms similar to those it laid out in a suit against Apple Inc. (APPL), in which Apple had to refund at least $32.5 million to customers regarding mobile charges made by children.
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But Amazon said its purchasing procedures already meet the requirements set by the Apple lawsuit and that it has returned money to customers for unwanted purchases. Amazon is planning on fighting the lawsuit, which was filed in a Seattle Federal Court, Bloomberg noted.
Shares of Amazon are lower by -0.18% to $329.39 in early afternoon trading on Thursday.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."