Apple settles complaint regarding kids' in-app purchases
TweetFollow Us on Twitter

Apple settles complaint regarding kids' in-app purchases


Apple has agreed to provide full refunds to consumers, paying a minimum of US$32.5 million, to settle a Federal Trade Commission complaint that the company billed consumers for millions of dollars of charges incurred by children in kids’ mobile apps without their parents’ consent.

Under the terms of the settlement with the FTC, Apple also will be required to change its billing practices to ensure that it has obtained express, informed consent from consumers before charging them for items sold in mobile apps. The FTC’s complaint alleges that Apple violated the FTC Act by failing to tell parents that by entering a password they were approving a single in-app purchase and also 15 minutes of additional unlimited purchases their children could make without further action by the parent. 

The complaint also alleges that Apple doesn't inform account holders that entering their password will open a 15-minute window in which children can incur unlimited charges with no further action from the account holder. In addition, according to the complaint,

The settlement requires Apple to modify its billing practices to ensure that Apple obtains consumers’ express, informed consent prior to billing them for in-app charges, and that if the company gets consumers’ consent for future charges, consumers must have the option to withdraw their consent at any time. Apple must make these changes no later than March 31, 2014.

Under the settlement, Apple will be required to provide full refunds, totaling a minimum of $32.5 million, to consumers who were billed for in-app charges that were incurred by children and were either accidental or not authorized by the consumer. Apple must make these refunds promptly, upon request from an account holder.

Apple is required to give notice of the availability of refunds to all consumers charged for in-app charges with instructions on how to obtain a refund for unauthorized purchases by kids. Should Apple issue less than $32.5 million in refunds to consumers within the 12 months after the settlement becomes final, the company must remit the balance to the FTC.

 
AAPL
$101.79
Apple Inc.
+0.21
GOOG
$589.27
Google Inc.
+4.50
MSFT
$46.68
Microsoft Corpora
+0.16
MacNews Search:
Community Search:

Latest Forum Discussions

See All

view counter
view counter
view counter
view counter
view counter
view counter

Huerons (Games)
Huerons 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: EXCLUSIVE LAUNCH PRICE! Huerons is 50% off until September 20th!Huerons are tiny colored circles. Merge them by clicking on an empty cell next to them until only one Hueron remains on the board.There can be only one. -- Nominated for... | Read more »
Down Among the Dead Men (Games)
Down Among the Dead Men 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Avast! Take to the high seas in a fully interactive piratical tale of broadsides and buccaneers. From author Dave Morris and the studio behind Steve Jackson's Sorcery! and 80 Days. | Read more »
Sling Adds Chromecast Support Through Sl...
Sling Adds Chromecast Support Through Slingplaye​r Mobile Apps Posted by Jessica Fisher on September 18th, 2014 [ permalink ] | Read more »
How to Completely Delete Your iPhone’s C...
The iPhone 6 is out tomorrow, and plenty of people are excited about it. So much so that they’re planning to – or already have – traded in their old iPhone to go towards it. The thing about trading in hardware is it’s very important to make sure your personal information isn’t still on there once it leaves your hands. You generally have nothing to... | Read more »
Dragon Quest I Review
Dragon Quest I Review By Andrew Fisher on September 18th, 2014 Our Rating: :: THINE QUEST AWAITETHUniversal App - Designed for iPhone and iPad Its historical significance aside, Dragon Quest 1 is a fun, campy, difficult, thoroughly old-school RPG.   | Read more »
It Came From Canada: Overkill 3
Overkill 3 is like every trope of big modern gaming rolled into one. It’s a sequel to an action-packed military shooter. It’s flashy and scripted and flaunts its sophisticated graphics. And it’s a mobile game with a heavy emphasis on in-app purchases. But does it still manage to forge its own identity within that sea of marketing points? We find... | Read more »
New Modes and Leader Boards in Update fo...
New Modes and Leader Boards in Update for Rules! Posted by Jessica Fisher on September 18th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
TwistedRun Review
TwistedRun Review By Rob Thomas on September 18th, 2014 Our Rating: :: DON'T TWIST YOUR ANKLE!Universal App - Designed for iPhone and iPad TwistedRun is kind of like running up a giant curly fry into the sky. Or maybe that was just a dream I had last night. It’s hard to tell sometimes. No, wait. I was wrong. This is an endless... | Read more »
Scope Review
Scope Review By Jennifer Allen on September 18th, 2014 Our Rating: :: LOCATION AWAREiPhone App - Designed for the iPhone, compatible with the iPad Want to easily find photos from around the world based on their location? Scope is a handy app for that.   | Read more »
HipstaFox Review
HipstaFox Review By Jordan Minor on September 18th, 2014 Our Rating: :: FANTASTIC MR. FOXUniversal App - Designed for iPhone and iPad HipstaFox is a great single that makes players long for the whole album.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.