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
$105.22
Apple Inc.
+0.39
GOOG
$539.78
Google Inc.
-4.20
MSFT
$46.13
Microsoft Corpora
+1.11
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Rami Ismail Opens Up distribute​() for D...
Rami Ismail Opens Up distribute​() for Developers Posted by Jessica Fisher on October 24th, 2014 [ permalink ] Rami Ismail, Chief Executive of Business and Development at indie game studio | Read more »
Great Hitman GO Goes on Sale and Gets Ne...
Great Hitman GO Goes on Sale and Gets New Update – Say That Three Times Fast Posted by Jessica Fisher on October 24th, 2014 [ permalink ] | Read more »
Rival Stars Basketball Review
Rival Stars Basketball Review By Jennifer Allen on October 24th, 2014 Our Rating: :: RESTRICTIVE BUT FUNUniversal App - Designed for iPhone and iPad Rival Stars Basketball is a fun mixture of basketball and card collecting but its energy system will annoy.   | Read more »
Rubicon Development Makes Over a Dozen o...
Rubicon Development Makes Over a Dozen of Their Games Free For This Weekend Only Posted by Jessica Fisher on October 24th, 2014 [ permalink ] | Read more »
I Am Dolphin Review
I Am Dolphin Review By Jennifer Allen on October 24th, 2014 Our Rating: :: NEARLY FIN-TASTICUniversal App - Designed for iPhone and iPad Swim around and eat nearly everything that moves in I Am Dolphin, a fun Ecco-ish kind of game.   | Read more »
nPlayer looks to be the ultimate choice...
Developed by Newin Inc, nPlayer may seem like your standard video player – but is aiming to be the best in its field by providing high quality video play performance and support for a huge number of video formats and codecs. User reviews include quotes such as “I have tested many apps but this one is my only official player for all my iDevice,” “I... | Read more »
Fighting Fantasy: Caverns of the Snow Wi...
Fighting Fantasy: Caverns of the Snow Witch Review By Jennifer Allen on October 24th, 2014 Our Rating: :: CLASSY STORYTELLINGUniversal App - Designed for iPhone and iPad Fighting Fantasy: Caverns of the Snow Witch is a sterling release from Tin Man Games, as per usual.   | Read more »
A Few Days Left (Games)
A Few Days Left 1.01 Device: iOS Universal Category: Games Price: $3.99, Version: 1.01 (iTunes) Description: Screenshots are in compliance to App Store's 4+ age rating! Please see App Preview for real game play! **Important: Make sure your device is supported! A Few Days Left supports iPhone 4s or newer, iPad 3 or newer. The... | Read more »
Toca Boo (Education)
Toca Boo 1.0.2 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0.2 (iTunes) Description: BOO! Did I scare you!? My name is Bonnie and my family loves to spook! Do you want to scare them back? Follow me and I'll show you how!SCARE | Read more »
Intuon (Games)
Intuon 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: Join the battle with your intuition in a new hardcore game Intuon! How well do you trust your intuition? Can you find a needle in a haystack? Can you reveal the truth among the lies? Intuition is your weapon!* Challenge!* Guess!* Win... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.