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
$100.86
Apple Inc.
-0.77
GOOG
$579.95
Google Inc.
+6.85
MSFT
$46.76
Microsoft Corpora
+0.52
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Zynga Unveils First Look at Looney Tunes...
Zynga Unveils First Look at Looney Tunes Dash! Posted by Ellis Spice on September 16th, 2014 [ permalink ] Be vewy, vewy qwiet. I’m hunting wunners featuwing wabbits, and luckily, it’s duck season wunner season. | Read more »
Guardians on the Go – How to Connect to...
At this point I’m relatively certain most of the country is familiar with Destiny. And for those looking to augment their game a bit, Bungie has changed their Bungie Mobile Companion App to Destiny Companion. | Read more »
Kunin Review
Kunin Review By Jordan Minor on September 16th, 2014 Our Rating: :: SHURIKEN DO ITUniversal App - Designed for iPhone and iPad Kunin is a nervous test of ninja reflexes.   Developer: Dodreams Price: FREE Version Reviewed: 1.0.1 Device Reviewed On: iPad Air | Read more »
4 KEMCO Titles are Just $0.99 for a Limi...
4 KEMCO Titles are Just $0.99 for a Limited Time Posted by Jessica Fisher on September 16th, 2014 [ permalink ] KEMCO RPGs Destiny Fantasia, Infinite Dunamis, Bonds of the Sk | Read more »
Introducing Flash, the Latest Wearable F...
Introducing Flash, the Latest Wearable Fitness Monitor from Misfit Posted by Jessica Fisher on September 16th, 2014 [ permalink ] The Misfit Flash is the newly-released fitness and sleep monitor from | Read more »
Hyper Trip Review
Hyper Trip Review By Jennifer Allen on September 16th, 2014 Our Rating: :: HYPER TWITCHYUniversal App - Designed for iPhone and iPad Tough and unforgiving, Hyper Trip is a bit like Snake – if Snake was really harsh.   | Read more »
Collectible Card Game Earthcore: Shatter...
Collectible Card Game Earthcore: Shattered Elements is Set to Arrive on iOS in 2015 Posted by Ellis Spice on September 16th, 2014 [ permalink ] Polish developers | Read more »
Boogey Boy Review
Boogey Boy Review By Jennifer Allen on September 16th, 2014 Our Rating: :: PRETTY BUT BASICUniversal App - Designed for iPhone and iPad It looks delightful but lack of Game Center support and more variety really affects the fun that Boogey Boy offers.   | Read more »
Vizzywig 4K (Photography)
Vizzywig 4K 1.0 Device: iOS iPhone Category: Photography Price: $999.99, Version: 1.0 (iTunes) Description: REQUIRES: iOS 7 on iPhone 5S with 32GB or 64GB. (Do not use iOS 8)The world's FIRST mobile 4K video capture, editing and distribution app. | Read more »
The Sleeping Prince Review
The Sleeping Prince Review By Jennifer Allen on September 15th, 2014 Our Rating: :: RESTRICTIVE KINGDOM SAVINGUniversal App - Designed for iPhone and iPad The Sleeping Prince looks and feels great to play, but its lack of peril and restrictive energy system infuriates.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.