Apple will refund at least $32.5M in app case

[Omaha Steve]

Source: AP-EXCITE

By JENNIFER C. KERR
WASHINGTON (AP) - Apple will refund at least $32.5 million to consumers to settle a federal case involving purchases that kids made without their parents' permission while playing on mobile apps, the government announced Wednesday.

The Federal Trade Commission said Apple will make full refunds for any such in-app purchases made by kids while playing on mobile phones and other devices, and incurring charges without parents' knowledge or permission.

The commission said it had received tens of thousands of complaints about unauthorized charges.

Edith Ramirez, the agency's head, said the settlement only involves children's mobile apps and charges racked up when kids bought things such as virtual currency or dragon food. In some cases, Ramirez said, charges ran into the hundreds and even thousands of dollars.

FULL story at link.


Read more: http://apnews.excite.com/article/20140115/DABBCSNO2.html

[BodieTown]

1. But No Punishment for Apple

From the AP story: The $32.5 million is the minimum that Apple would pay. As part of the settlement, Apple is required to pay full refunds to consumers for kids' unauthorized purchases, so the number could go higher. If it doesn't rise to $32.5 million, the difference would be paid to the FTC, Ramirez said.

If the "number could go higher", it means that Apple took in MORE than $32.5 million, and everybody knows it.

Sounds like a crime took place, and the criminal might even get to keep some of the spoils.

[FailureToCommunicate]

3. ...

[herding cats]

2. That article is a bit confusing.

It's better explained in The Guardian.

The FTC said Apple failed to inform consumers that they could be approving in-app purchases by entering a password on their device. After entering the password, users then had a 15-minute window where unlimited purchases could be made without further action taken by users.

“Although Apple adjusted certain screens in response and offered refunds, it still failed to notify account holders that by entering their password they were initiating a 15-minute window during which children using the app could incur charges without further action by the account holder,” FTC commissioner Maureen Ohlhausen said in a statement.

http://www.theguardian.com/technology/2014/jan/15/apple-practice-children-make-in-app-purchases