Apple will pay parents £20m over in-app purchases

 

Los Angeles

Apple is to refund at least $32.5m (£20m) to customers whose children made in-app purchases without their permission, using the parents' iPhones or iPads. The technology firm reached a settlement with the US Federal Trade Commission (FTC), following an FTC complaint that found many of Apple's child-friendly apps offered virtual goods and other chargeable items within the apps, costing anything from 99c to $99.99.

One consumer complained that her daughter had racked up charges of $2,600 while playing the game Tap Pet Hotel, while others reported up to $500 of purchases made by their children in the apps Dragon Story and Tiny Zoo Friends. Apple had already begun to refund the in-app purchases to affected consumers before the FTC settlement. Last year the company emailed 28 million of its customers to solicit their complaints; it received 37,000 claims, which it refunded.

In an internal memo to employees, published by the blog 9to5mac.com, Apple's CEO Tim Cook said the issue arose because children were able to make in-app purchases unhindered if their parents had entered their iTunes passwords within the previous 15 minutes. Cook wrote, “The 15-minute window had been there since the launch of the App Store in 2008 and was aimed at making the App Store easy to use, but some younger customers discovered that it also allowed them to make in-app purchases without a parent's approval.”

Cook also said that the parental controls in Apple's iOS operating system remained strong, and that, “From the very beginning, protecting children has been a top priority for the App Store team and everyone at Apple.”

The FTC has demanded that Apple further inform its customers about the 15-minute window, and alter its App Store billing system to ensure that users are aware when they are about to be charged for an in-app purchase. FTC Chairwoman Edith Ramirez said, “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. You cannot charge consumers for purchases they did not authorize.”

The settlement will not affect Apple customers in the UK. FTC spokesman Jay Mayfield said, “The consumers covered by our settlement with Apple are defined as individuals and entities with a billing address in the United States.”

PROMOTED VIDEO
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Infrastructure / Development Support

    £20000 - £30000 per annum: Recruitment Genius: Fantastic opportunity to join a...

    Ashdown Group: SQL Developer - Oxfordshire - £40,000

    £35000 - £40000 per annum + Benefits: Ashdown Group: BI Developer (Business In...

    Guru Careers: Mac Operator / Artworker

    £Negotiable (DOE): Guru Careers: We are seeking a Mac Operator / Artworker to ...

    Guru Careers: Digital Content Designer / Web Designer

    £Negotiable (DOE): Guru Careers: We are seeking a Digital Content Designer / W...

    Day In a Page

    Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

    Greece elections

    In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
    Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

    Holocaust Memorial Day

    Nazi victims remembered as spectre of prejudice reappears over Europe
    Fortitude and the Arctic attraction: Our fascination with the last great wilderness

    Magnetic north

    The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
    Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

    Homeless Veterans appeal

    Homeless in Wales can find inspiration from Daniel’s story
    Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

    Front National family feud?

    Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
    Pot of gold: tasting the world’s most expensive tea

    Pot of gold

    Tasting the world’s most expensive tea
    10 best wildlife-watching experiences: From hen harriers to porpoises

    From hen harriers to porpoises: 10 best wildlife-watching experiences

    While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
    Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

    'I don’t want just to hold tackle bags, I want to be out there'

    Nick Easter targeting World Cup place after England recall
    DSK, Dodo the Pimp, and the Carlton Hotel

    The inside track on France's trial of the year

    Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
    As provocative now as they ever were

    Sarah Kane season

    Why her plays are as provocative now as when they were written
    Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

    Murder of Japanese hostage has grim echoes of another killing

    Japanese mood was against what was seen as irresponsible trips to a vicious war zone
    Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

    Celebrities call on David Cameron to take more Syrian refugees

    One young mother tells of torture by Assad regime
    The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

    The enemy within

    People who hear voices in their heads are being encouraged to talk back
    'In Auschwitz you got used to anything'

    'In Auschwitz you got used to anything'

    Survivors of the Nazi concentration camp remember its horror, 70 years on
    Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

    Autumn/winter menswear 2015

    The uniforms that make up modern life come to the fore