Amazon's new plan aims to get teens hooked

Amazon unveils new Alexa devices
Amazon unveils new Alexa devices

Call it an allowance for the 21st century.

Amazon (AMZN) said Wednesday it's rolling out a new service for all Amazon customers that will make it easier for teens to shop on mom and dad's dime, but with parental oversight.

Teens aged 13 to 17 can now create their own login on the Amazon mobile app that links to a parent's account.

Parents can sign up to either pre-approve each order via text or email (the default), set a spending limit for each order or to automatically approve all purchases. No matter which option they choose, they'll receive an itemized receipt for each purchase.

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"As a parent of a teen, I know how they crave independence, but at the same time that has to be balanced with the convenience and trust that parents need," said Michael Carr, vice president of Amazon Households, in a statement.

Teens using the service will also be able to include a personal note when making a purchase (for example: "This is a book I need for class").

Parents who aren't pleased with their child's purchase have up to 30 minutes to cancel an order, according to an Amazon spokeswoman.

The set up also aims to encourage teens to use their parents' Prime accounts, if they have them. They can also have access to Prime Video and Twitch Prime, Amazon's gaming service.

Still, parents can maintain their privacy.

Their credit card information will be hidden on the teen accounts, as will their purchase and browsing histories.

Correction: An earlier version of this story incorrectly stated that this service is available only to Amazon Prime members.

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