![]() In its complaint, the FTC notes that Apple received at least tens of thousands of complaints about unauthorized in-app purchases by children. In addition to its consumer protection enforcement activity in the mobile sphere, last year, the FTC issued staff reports addressing mobile payments and providing recommendations for the mobile industry on how to protect consumers as new and innovative payment systems come into use, advocating improved privacy disclosures in the mobile environment, and addressing advertising disclosures in the context of mobile devices. The rapidly expanding mobile arena has been a focus of the Commission’s consumer protection efforts. In addition, according to the complaint, Apple has often presented a screen with a prompt for a parent to enter his or her password in a kids’ app without explaining to the account holder that password entry would finalize any purchase at all. The complaint alleges that Apple does not inform account holders that entering their password will open a 15-minute window in which children can incur unlimited charges with no further action from the account holder. These charges generally range from 99 cents to $99.99 per in-app charge. Many of these charges are for virtual items or currency used in playing a game. 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.Īpple offers many kids’ apps in its App Store that allow users to incur charges within the apps. “You cannot charge consumers for purchases they did not authorize.” ![]() “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. Under the terms of the settlement with the FTC, 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. has agreed to provide full refunds to consumers, paying a minimum of $32.5 million, to settle a Federal Trade Commission complaint that the company billed consumers for millions of dollars of charges incurred by children in kids’ mobile apps without their parents’ consent. About the FTC Show/hide About the FTC menu itemsĪpple Inc.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items. ![]() Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items. ![]()
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