The Federal Trade Commission has reached a settlement agreement with Apple over in-app purchases made by children without parental consent. The Federal Trade Commission has reached a settlement agreement with Apple over in-app purchases made by children without parental consent.
The Cupertino, Calif.-based technology company has agreed to pay full refunds to the consumers, which will reach a minimum of $32.5 million. The settlement closes a FTC complaint claiming that Apple billed customers for millions of dollars worth of purchases made by children in kids? apps without their parents’ knowledge.
According to the terms of the settlement, Apple is also required to update its billing practices to ensure the company has obtained express, informed consent from consumers before charging them for purchases made within apps. The settlement states these changes must be made no later than March 31.
The settlement comes out of a complaint filed in the FTC claiming Apple violated the FTC Act by failing to appropriately inform parents that by entering a password, they approved an in-app purchase and 15 minutes of additional unlimited purchase time that could be used by their children without any further consent.
Charges for an in-app purchase for a children’s app typically range from 99 cents to $99.99 per charge, according to a release from the FTC.