Apple Fined for Allowing Kids Make In-App PurchasesAdded: Monday, January 20th, 2014
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
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The company will pay over $32 million to consumers in a settlement of a federal complaint about Apple’s practices which allowed kids to make in-app purchases without their parents’ permission.
The FTC announced that Apple will fully refund purchases made within apps without permission from account owners. The Federal Trade Commission claimed it had received tens of thousands of complaints about such purchases, with people saying that the kids’ expenditures exceeded $2,600 in certain cases.
Apple CEO admitted they had been working to refund clients affected by such purchases since 2013. He also criticized the intervention of the Federal Trade Commission in the issue, because the case had actually been settled already. Anyway, what the FTC required Apple to do the company was already going to do, so the tech giant simply decided to accept it instead of taking on a long and distracting legal fight. Under the agreement, Apple will change its purchasing process in order to ensure customers give full consent when purchasing something through mobile apps – the items sold can range from $1 to $100 per piece.
The Federal Trade Commission claimed that Apple failed to inform users that they could approve their in-app purchases with a password. Once you enter the password, you then have a 15-minute window and are able to make unlimited purchases without taking further action. FTC insists that although the company adjusted certain screens in response and offered refunds, it still didn’t notify account owners that by entering their password they were initiating a 15-minute window during which kids using the application could incur charges without further action by an adult.
Even if the tech giant chose to forgo providing this critical information, the result was unfair to the thousands of users who subsequently experienced unauthorized in-app charges and lost millions of dollars. Now the company is required to alert all users who may have experienced accidental or unauthorized in-app purchases before the end of March 2014 that they can get a refund. However, if Apple pays less than $32 million to consumers, the remaining balance will be received by the FTC.
January 20th,2014Posted by:
Monday, January 20th, 2014
|posted by (2014-01-21 02:35:44)|
|only $32 mil???|
|posted by (2014-01-22 01:32:29)|
|Not just Apple, Google ain't innocent, many app producers rely and do their best to hide 'pay real cash' for items in games EA is one of the biggest.|
All the 'Have a free game' (and we'll screw you after) app providers should be clamped, as the majority are aimed at kids who as we all know will just click as they don't usually know the value of the cash their spending over periods of time.
And companies like Apple fined in the millions is just pocket change, get the yearly accounts and hit them for 70% of profit. Make it hurt not cause a laugh in the board room.
|Wow amazing and I am an apple stock holder! Parents need to be more responsible for there kids actions! Also A Google stock holder, anyway to make a buck I guess! Hey you got a cup of coffee I can spill in my lap? Does this ring a bell! Money hungry fools. I have to work hard for my money like most of you do. These money leaches are dangerous! I would like to have a pot of gold, but I can't get that lucky! ROFL Get a real job then you would not have to steal from us stockholders!|
|posted by (2014-01-22 16:06:32)|
|nice one apple windowsphone has password protecting the Store from kids or jerk friends||
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