Apple to refund $32.5mn to parents whose kids made in-app purchases without consent
Washington, Jan. 16 : Apple is reportedly going to refund consumers at least a sum of 32.5 million dollars to settle a federal case involving in-app purchases that kids made without seeking parental permission.
The Federal Trade Commission (FTC) ordered the tech giant to make full refunds for any such in-app purchases made by kids using mobile phones and other devices or any other charges by accident or without parents' permission.
According to Fox News, Apple would be required to change its billing practices to make it more obvious that an actual purchase is taking place during the course of the game or app.
FTC head, Edith Ramirez said that the settlement involves mobile apps and charges that shot up to even hundreds and thousands of dollars in some cases when kids bought things such as virtual currency or dragon food.
The complaint stated that when parents entered their password while a child played a game, Apple did not make it clear that that they unwittingly may be buying something in the game the child had clicked on, such as a chest of gems or treats for a virtual pet, the report said.
The commission further stated that parents were not told that once entering the password would open a 15-minute window in which kids could make unlimited purchases without further need of any password.
The tech giant has been ordered to modify its rules until Mar. 31 and come up with a billing system that ensures the company obtains consumers' informed consent before billing them for in-app purchases, the report added.
--ANI (Posted on 16-01-2014)
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