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
$111.78
Apple Inc.
-0.87
GOOG
$516.35
Google Inc.
+5.25
MSFT
$47.66
Microsoft Corpora
+0.14
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Galaxy Trucker Pocket (Games)
Galaxy Trucker Pocket 1.0.8 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0.8 (iTunes) Description: Galaxy Truckers Wanted!=================================================================(5/5) "Galaxy Trucker isn’t merely the best board game on iPad this year, it’s the best board game on iPad ever." - Pocket Tactics | Read more »
Make your own Tribez Figures (and More)...
Make your own Tribez Figures (and More) with Toyze Posted by Jessica Fisher on December 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
So Many Holiday iOS Sales Oh My Goodness...
The holiday season is in full-swing, which means a whole lot of iOS apps and games are going on sale. A bunch already have, in fact. Naturally this means we’re putting together a hand-picked list of the best discounts and sales we can find in order to make your own App Store holiday shopping easier. Things are already kicking off with an... | Read more »
It’s Bird vs. Bird in the New PvP Mode f...
It’s Bird vs. Bird in the New PvP Mode for Angry Birds Epic Posted by Jessica Fisher on December 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Telltale Games and Mojang Announce Minec...
Telltale Games and Mojang Announce Minecraft: Story Mode – A Telltale Games Series Posted by Jessica Fisher on December 19th, 2014 [ permalink ] | Read more »
WarChest and Splash Damage Annouce Their...
WarChest and Splash Damage Annouce Their New Game: Tempo Posted by Jessica Fisher on December 19th, 2014 [ permalink ] WarChest Ltd and Splash Damage Ltd are teaming up again to work | Read more »
BulkyPix Celebrates its 6th Anniversary...
BulkyPix Celebrates its 6th Anniversary with a Bunch of Free Games Posted by Jessica Fisher on December 19th, 2014 [ permalink ] BulkyPix has | Read more »
Indulge in Japanese cuisine in Cooking F...
Indulge in Japanese cuisine in Cooking Fever’s new sushi-themed update Posted by Simon Reed on December 19th, 2014 [ permalink ] Lithuanian developer Nordcurrent has yet again updated its restaurant simulat | Read more »
Badland Daydream Level Pack Arrives to C...
Badland Daydream Level Pack Arrives to Celebrate 20 Million Downloads Posted by Ellis Spice on December 19th, 2014 [ permalink ] | Read more »
Far Cry 4, Assassin’s Creed Unity, Desti...
Far Cry 4, Assassin’s Creed Unity, Destiny, and Beyond – AppSpy Takes a Look at AAA Companion Apps Posted by Rob Rich on December 19th, 2014 [ permalink ] These day | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.