Apple to refund $32.5 million for app purchases made by kids

Apple to refund $32.5 million for app purchases made by kids
Apple has agreed to refund $32.5 million dollars to consumers to settle a number of complaints made by customers. These are parents of young children who were billed for mobile apps purchased by their kids without parental approval. The settlement with the Federal Trade Commission was announced on Wednesday and requires Apple to change its billing practices so that consent is obtained from customers before charging them for mobile app purchases.

Apple CEO Tim Cook said in an internal memo to employees that Apple decided to settle with the FTC rather than face a long, drawn out legal battle. He also said that the changes demanded by the FTC to settle the case, happened to be the same changes that Apple was planning on doing anyway.

Many of the charges rung up by kids include in-app purchases made by these children after a free app is downloaded. Not understanding the financial aspects of the purchase, young children were buying extra lives, super powers and other high priced content. Many of the parents allowed their kids to download a freemium game, not thinking that the children could end up spending thousands of dollars after the game was downloaded for free.

source: Reuters

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45 Comments

1. Jinto

Posts: 436; Member since: Jan 15, 2014

Apple Sucks

3. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

Apple is great company. Like other companies, it's not perfect, but it definitely doesn't suck. One of the most influental and respected tech companies in world.

9. InspectorGadget80 unregistered

At least their paying back the parents. This time parents have to control their kids on what to purchase

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No one said they had to be perfect. But notice, this has never been a problem on any other platform. Not Blackberry OS, Palm OS, Windows Mobile, Windows Phone or Android. That's the problem with making crap so easy to do, you have no fail-safe for idiots who use your crap. IMO, Apple shouldn't have had to pay a cent and I don't even like APple all that much. Wrong is wrong and in this case the customer is wrong. ALL APPLE DEVICE COME WITH PARENTAL CONTROLS. Apple shouldn't have to pay because parents or so-called adults were to stupid to turn them on. Such locks would have simply prevented such activity. At some point parents need to take responsibility for their kids actions. Pont, 12 year old takes a loaded shotgun to school and kills 2 of his classmates, yet the parents walk scott free. I guess the school should have to pay for the death of the kids huh?

39. androtaku

Posts: 246; Member since: Dec 12, 2013

these days if u let your kids drive your toyota,u can sue toyota if your kids crash your car

31. Topcat488

Posts: 1415; Member since: Sep 29, 2012

Apple thought that selling them apps to kids, "was like taking candy from a baby". So I wouldn't say they're one of the "respected" tech Co. in the world, with lawsuits around every corner.

6. Extradite

Posts: 316; Member since: Dec 30, 2013

I have a Apple inside my Samsung fridge....

25. Gsmalltheway

Posts: 275; Member since: Aug 15, 2009

agree with you

28. whysoserious

Posts: 318; Member since: Jul 20, 2012

That's the most rational comment i have ever seen in my life.

33. androtaku

Posts: 246; Member since: Dec 12, 2013

sucks for paying back unintentional purchase? u must be utter sucks

2. Extradite

Posts: 316; Member since: Dec 30, 2013

Very generous and nice off Apple.

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Of* Apple rarely gives refunds or money away, so this is actually big news.

12. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Post #2 is Troll TM. He's found his way back.

23. Extradite

Posts: 316; Member since: Dec 30, 2013

Says the troll...

26. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Don't get mad bro, I simply figured out who you are by the way you post. It's pretty obvious

17. c.django

Posts: 13; Member since: Jan 09, 2014

you call this generousity , lol would you mind thinking how much profit apple has made from kids , this value of refundin maybe is 20% of the total sum.

34. androtaku

Posts: 246; Member since: Dec 12, 2013

does google (now the share worth over 1k/share) does any refund? troll

36. c.django

Posts: 13; Member since: Jan 09, 2014

well as i read the article it does not says that apple refunds by theirs desire but they are forced ,and yeah i dont say nothing pozitive about google, same and they do steal from kids.

38. androtaku

Posts: 246; Member since: Dec 12, 2013

Court order to pay for pure user negligence pretty hard to do business these days

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Court order

4. greathero1

Posts: 584; Member since: Jun 13, 2008

I need them to make a small refund of my in app purchases playing Metropolis HD. This damn game has gotten a little over $500 from me since Nov. It's too damn addictive lol!

5. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

Bad thing is that kids don't understand how expensive let's say Clash of Clans or Tapped Out can get. Parents should supervise more (well, easier said than done).

13. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

My son has his own line, and his own money to pay his bill. We've warned him, showed him, and he's pretty good about it.

14. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

Great, that's responsible parenting. +1

30. aditya.k

Posts: 496; Member since: Mar 10, 2013

Son? I thought you just got married? O.o

37. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Let me spell it for you. S O N.

42. good2great

Posts: 1042; Member since: Feb 22, 2012

there's darkk again... always schooling these lames on the site... haha! crazy you had to spell it out bro.

44. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

He asked for it g2g. +1

40. RebelwithoutaClue unregistered

You do know it's possible to have kids before marriage or from a previous relationship ;)

43. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

He doesn't realize that Rebel. +1

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