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
$124.24
Apple Inc.
+0.86
GOOG
$555.17
Google Inc.
-3.61
MSFT
$41.21
Microsoft Corporation
-0.25
MacNews Search:
Community Search:
view counter

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

Bio Inc's New Expansion is Infectin...
Bio Inc., by DryGin Studios, is the real time strategy game where you infect a human body with the worst virus your evil brain can design. Recently, the game was updated to add a whole lot of new features. Now you can play the new “Lethal” difficulty, which chakllenges even hardcore players. If you aren't quite there yet you can still enjoy the “... | Read more »
The Monocular Minion is Here! Despicable...
Despicable Me: Minion Rush, by Gameloft, is introducing a new runner to the mix in their latest update. Now you can play as Carl, the prankster minion. Carl has a few new abilities to play with, including running at a higher speed from the start. Gameloft has also added Eduardo's House as a new area. You'll be able to race through the infamous El... | Read more »
Dungeon of Madness (Games)
Dungeon of Madness 1.0.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.0 (iTunes) Description: Dungeon of Madness is an action game where you rotate tiles to create our own route. Help the hero by connecting the road so he reaches hostages, then lead them out while also directing monsters into deadly traps.... | Read more »
Filters for iPhone (Photography)
Filters for iPhone 1.0 Device: iOS iPhone Category: Photography Price: $.99, Version: 1.0 (iTunes) Description: | Read more »
Jump'N'Shoot Attack (Games)
Jump'N'Shoot Attack 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: A mobile game for gamers! Join Louise Lightfoot, the legendary "Master of Jumping and Shooting", on her mission to save the President of Earth 4 from evil space mutants known as the Xatharr!! Collect items to boost attacks... | Read more »
Space Bounties Inc. (Games)
Space Bounties Inc. 1.4 Device: iOS Universal Category: Games Price: $1.99, Version: 1.4 (iTunes) Description: SuperGameDroid: 4/5 "Satisfying futuristic RPG combat, high replay value, and a heavy dose of nostalgia make Space Bounties Inc. a worthwhile experience." SlimGamer: 9/10 "From the retro graphics to the pitch-perfect... | Read more »
Gamebook: Pocket RPG (Games)
Gamebook: Pocket RPG 1.0.11 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.11 (iTunes) Description: Walk into the Land of Lanthir Lamath ruled by wicked skeletons and fight for your life in a thrilling adventure. It's a book. It's a game. It's a gamebook.Choose your own adventure.Simple rules and gameplay.Running... | Read more »
Kids Can Mix, Match, and Catch with Tata...
Tatadada MixMatch, by Tatadada Ltd, is a mobile version of the classic game of mix & match. The game uses brightly colored creatures to train your children's pattern matching skills and hand-eye coordination. It's aimed at children around age 5 and uses simple swipe controls to make it easy for them to play. They'll be able to select and... | Read more »
The Trace: Murder Mystery Game (Games)
The Trace: Murder Mystery Game 1.2.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.2.0 (iTunes) Description: | Read more »
This Week at 148Apps: March 16-20, 2015
Spring Roars In At 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the many good apps and games with something just a little bit more to offer. Take a look at what we'... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.