Apple has agreed to refund customers with at least US$32.5 million worth of
mobile app purchases in order to settle a Federal Trade Commission investigation
into how children were able to make in-app purchases without their parents'
consent.
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.
"This settlement is a victory for consumers harmed by Apple's unfair
billing, and a signal to the business community: whether you're doing business
in the mobile arena or the mall down the street, fundamental consumer
protections apply," said FTC Chairwoman Edith Ramirez.
In its complaint, the FTC notes that Apple received tens of thousands of
complaints about unauthorized in-app purchases by children.
One consumer reported that her daughter had spent $2,600 in the app "Tap
Pet Hotel," and other consumers reported unauthorized purchases by children
totaling more than $500 in the apps "Dragon Story" and "Tiny Zoo Friends."
According to the complaint, consumers have reported millions of dollars in
unauthorized charges to Apple.
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.
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