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Apple Will Refund $32.5M To Settle In-App Purchase Complaints With FTC

coondoggie writes "Apple today agreed to refund at least $32.5 million to iTunes customers in order to settle FTC complaints about charges incurred by children in kids' mobile apps without their parents' consent. 'As alleged in the Commission's complaint, Apple violated this basic principle by failing to inform parents that, by entering a password, they were permitting a charge for virtual goods or currency to be used by their child in playing a children's app and at the same time triggering a 15-minute window during which their child could make unlimited additional purchases without further parental action."

33 of 252 comments (clear)

  1. They should require refund window by Lumpy · · Score: 4, Insightful

    When I buy an app and discover it is a steaming turd, I should be able to click to remove it and get a refund within 15 minutes. That way the parent should see the charges and then reverse them easily. Granted if the parent is too stupid to check why they are getting 30 email alerts in a row after little johnny jumped on the ipad... That's their own fault.

    --
    Do not look at laser with remaining good eye.
    1. Re:They should require refund window by Altus · · Score: 3, Informative

      Generally the receipts for these charges show up a day or 2 after the purchase. I assume apple is batching together the charges or something and processing them in bulk somehow. Or maybe it just takes 2 days for the email alert to go out? I don't know.

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

    2. Re:They should require refund window by UnknowingFool · · Score: 4, Informative

      Apple batches the charges as it reduces processing fees for credit cards. If you buy 2 $0.99 apps, it costs them less to run it as one $1.98 charge with two items in the invoice than two separate charges.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    3. Re: They should require refund window by ackthpt · · Score: 4, Insightful

      Because everyone is required to have a constant, always on internet connection tethered to them every moment of their lives?

      Haven't met anyone under the age of 30 lately, have you?

      Like in particular kids. If they can't, like, stay connected then they would simply die, like!

      I'm sitting at an intersection watching high school kids go by and at least 60% of the girls have a phone in their hand, which they are looking at.

      There's a skyrocketing market for behavior modification counselling if ever there was one.

      so, you think Justin's egg throwing was merited and you had to share that with all your friends ... let's work on why that is so important to you ...

      --

      A feeling of having made the same mistake before: Deja Foobar
    4. Re:They should require refund window by Swampash · · Score: 2

      When I buy an app and discover it is a steaming turd, I should be able to click to remove it and get a refund within 15 minutes.

      You can - I've done it more than once with apps that turned out to be, as you put it, steaming turds.

      This case however is about IN-APP purchases. E.g. playing a shitty freemium game like Plants vs Zombies 2 and unlocking new plants by clicking the "buy this plant" button, which costs real-world money.

    5. Re:They should require refund window by david_thornley · · Score: 4, Insightful

      When doing something that I knew would bore my young son, I'd often give him something to do. If I'd had an iPhone back then, I would have sometimes found a game I thought he'd like and hand it over. I wouldn't monitor him closely in those situations; if I were going to pay that much attention to him, I wouldn't need something to distract him.

      Now, suppose I downloaded and paid for a game. Game purchase authorized. What Apple didn't in general tell people is that that authorization would last past the initial purpose, unless the user dug deep in Settings to turn that feature off. What the game app probably didn't say was that it had in-app purchases that would be tempting to young children. It would be really, really easy for a parent to think he or she was handing something safe to the child without realizing it. Note that, given situations that involve young children, spending five minutes to research something that appears safe isn't always going to happen.

      Young children don't understand money. Enough adults have problems thinking of credit purchases as actually spending money on something. I distinctly remember not understanding money as anything except bills and coins.

      I have absolutely no sympathy with people who write apps like this, that are designed to siphon money from busy parents who don't fully understand technicalities.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    6. Re:They should require refund window by tlhIngan · · Score: 2

      When I buy an app and discover it is a steaming turd, I should be able to click to remove it and get a refund within 15 minutes. That way the parent should see the charges and then reverse them easily. Granted if the parent is too stupid to check why they are getting 30 email alerts in a row after little johnny jumped on the ipad... That's their own fault.

      In general, you can. You have to contact Apple Support for it, though, but you can get refunded on app purchases.

      Heck, in Taiwan, the law requires app stores have a 7 day return window. Apple obeys by it, Google does not. In fact, Google at one point removed the ability to buy apps if you're from Taiwan. Instead, they lobbied the government to give them an exception to the 7 day rule. (It was granted).

    7. Re:They should require refund window by JabrTheHut · · Score: 2

      Meanwhile, if a parent is idiot enough to let their toddler play with a somewhat-fragile glass-faced $500+ electronic device?

      You mean like a TV? And - toddler? There's a stage or two between toddler and adult that you seem to be unaware of...

      The parent(s) deserve the consequences, and should count themselves lucky that little Junior didn't slam it into the floor until the screen shattered.

      She keeps slamming toys into the screen, but she's not strong enough to break it. Yet.

      --
      Work like no one is watching. Dance like you've never been hurt. Make love like you don't need the money.
    8. Re: They should require refund window by Anonymous Coward · · Score: 2, Insightful

      Aww cmon,
      Apple has to specifically approve every App. A few moments playing with those apps would reveal some of the most devious price gouging tactics used, eg; what was it $25 USD for happy berries for smurfs? A game targeted specifically at children.
      Then there was copious amounts of news coverage of these types of Apps - highlighting the dubiously targeted child purchases.
      Are you really thinking that Apple didn't know of these purchases? And that their accountants didn't notice the percentages of each purchase they were accumulating? And that they weren't aware of such unethical immoral behaviour by app developers?

    9. Re:They should require refund window by immaterial · · Score: 4, Insightful

      I know I can't figure out my AT&T bill, no matter how I try. I imagine Apple has imitated that art.

      It is truly complicated.

    10. Re:They should require refund window by KingOfBLASH · · Score: 2

      I bought an app the other day that didn't work. I went to my apple account, clicked the "Report a problem with this purchase button" under recent purchases, explained the problem, and was issued a refund the same day.

      I don't know if they'd do the same thing if you just said "hey this game sucks can I return it" but then how many stores will let you return video games after they've been opened?

    11. Re:They should require refund window by farble1670 · · Score: 2

      Granted if the parent is too stupid to check why they are getting 30 email alerts in a row after little johnny jumped on the ipad... That's their own fault.

      yeah, because we are all sitting around watching our inbox constantly.

    12. Re:They should require refund window by farble1670 · · Score: 2

      the parents should have a 15 minute window in which they have to claim it

      that's almost pointless as it requires you to figure out what has happened within 15 minutes of the action.

    13. Re:They should require refund window by AK+Marc · · Score: 2

      Giving the kid a ball and ignoring them is good parenting, but handing them an educational game on an iPad and ignoring them is horrible parenting? Apple owes you a clue.

    14. Re:They should require refund window by squiggleslash · · Score: 2

      Sorry, but you're missing the fact that if a heroic jerb creating (in China) corporation does anything that results in you losing money because of anything that involved any decision on your part, regardless of whether you did it knowing that you'd lose money, or whether the corporation even used trickery or in some other way took advantage of the fact no reasonable person would think they'd lose money, then ITS YOUR FAULT AND YOUR DUMM HUH HUH.

      *sigh* I don't understand the mentality either. Who the hell wants to spend their entire lives having a lawyer and army of technical experts look over every decision they make, just in case there's some hidden feature in there that's likely to screw you over.

      --
      You are not alone. This is not normal. None of this is normal.
    15. Re:They should require refund window by ruir · · Score: 2

      There is an option to disable in-app purchases, and is disabled both in my ipad and my iphone as protection from my kid, from myself and from potentially malicious apps.

    16. Re:They should require refund window by AK+Marc · · Score: 2
      You are obviously not a parent. There's never a situation where the "best" response is to passify your child so you can deal with something else? Never? It may not be "good parenting" in your book, but it's at least sometimes necessary.

      And, somehow, I don't think all this "in-game purchase" stuff is about educational applications, except as defined by rationalizing pseudo-parents.

      If your comments don't stand up to the best case and worst case scenarios, then your argument fails.

    17. Re:They should require refund window by dk20 · · Score: 4, Insightful

      Spoken as a parent?

      So your logic is apple has no fault here even though they approve every app, and these apps with in-app purchases are approved for kids?

      I know, apple is settling because they are correct but feel like handing over some money to reduce their cash balances and its in their shareholders interest?
      PS. There is a huge difference between "owes you money" and "a refund".

    18. Re:They should require refund window by sjames · · Score: 2

      It's not the specifically authorized purchases that parents are protesting. It's followup purchases in the inadequately documented 15 minute window following that specifically authorized purchase that they're complaining about.

      Stupidity should be punished and it is indeed quite stupid to assume that if someone authorizes a specific purchase that they are also authorizing additional purchases for the next 15 minutes unless they specifically say so.

    19. Re:They should require refund window by Lumpy · · Score: 2

      That was pre scubag things like "in app purchases"

      Allowing that opens the door to scumbaggery. All mobile platforms need to slam the door shut on the "in app purchase" crap.

      --
      Do not look at laser with remaining good eye.
  2. I'll believe it when I see it by vinn01 · · Score: 5, Interesting

    Apple was pure evil about this. I got my kid an iPod touch a few years ago. I set him up with his own AppleID, and loaded his iTunes account with a generous iTunes gift card. I told him that there were lots of free apps and he should save his money by playing the free apps.

    A couple months later he complained that he could not download any more free apps. I checked his account and he had spent his entire iTunes gift card. You need money in your iTunes account to download a free app. He got very upset and pleaded with me that he had only downloaded free app and he had not gone crazy downloading high priced junk.

    I was able to generate a detailed listing of his iTunes purchases. All the gift card money has been spent on in-game purchases. He had no idea that he was purchasing anything. He showed me. The game would ask if the player wanted something (more time, more bullets, more lives, etc.) and ask for the AppleID password. It was entirely unclear that he was spending real money. No sales receipt was ever generated. I complained to Apple and was told that they don't control in-game purchases and that since we didn't buy anything from "Apple", they could not refund anything. I'm sure that didn't stop Apple from collecting fees on the in-game app purchases.

    Will my son get his gift card money back? I doubt it.

    1. Re:I'll believe it when I see it by Penguinisto · · Score: 4, Informative

      You need money in your iTunes account to download a free app.

      1) They changed this behavior at least since 2010 - you don't even need a card (of any type) to open an account nowadays.
      2) App Store and iTunes are two different entities.
      3) If the kid is younger than 13 or so, why the hell did you not control the password?
      4) FYI: kids at that age lie. A lot.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    2. Re:I'll believe it when I see it by Anonymous Coward · · Score: 2, Insightful

      You need money in your iTunes account to download a free app.

      Bullshit. You do not need any money (CC#, gift card, or otherwise) attached to your Apple ID to download free apps.

      He got very upset and pleaded with me that he had only downloaded free app and he had not gone crazy downloading high priced junk.

      I was able to generate a detailed listing of his iTunes purchases. All the gift card money has been spent on in-game purchases. He had no idea that he was purchasing anything. He showed me. The game would ask if the player wanted something (more time, more bullets, more lives, etc.) and ask for the AppleID password. It was entirely unclear that he was spending real money.

      Bullshit. From the start, in-app purchases popped up a notification confirming the purchase, with the dollar amount right there in the confirmation.

      No sales receipt was ever generated.

      Bullshit. Apple sends purchase receipts (for apps, in-app purchases, everything) to the primary email address you registered with the Apple ID.

      This here is a perfect example of how stupid and inattentive a parent had to be to allow a kid to rack up crazy charges. You put money on your kids account, and gave him full access to spend it all - and, despite notifications that he was spending actual money (which he and, apparently, YOU both clicked through without even reading), he went ahead and spent it all. And now you're whining about it.

    3. Re:I'll believe it when I see it by gerardrj · · Score: 2

      Minor correction:
      You do need a payment method to open the iTunes Store account. After 24 hours you may remove the payment method from the account, but the CC is a form of identity and age verification in the process.

      --
      Article X: The powers not delegated... by the Constitution...are reserved...to the people
    4. Re:I'll believe it when I see it by immaterial · · Score: 3, Informative
    5. Re:I'll believe it when I see it by Em+Adespoton · · Score: 2

      Minor correction:
      You do need a payment method to open the iTunes Store account. After 24 hours you may remove the payment method from the account, but the CC is a form of identity and age verification in the process.

      This makes no sense... you can open an account using a gift card -- which says absolutely nothing about identity or age verification.

    6. Re:I'll believe it when I see it by Mr.123 · · Score: 3, Informative

      I've opened a lot of accounts in the last 3 years with nothing attached to them for older people. It can absolutely be done.

  3. why need an password for free apps? needs more by Joe_Dragon · · Score: 4, Insightful

    why need an password for free apps? needs more control like say no password for free / updates and or an pin / password for buying stuff.

    I think cable vod systems now have the free stuff not need to use the same buy screen with a price of 0 that PPV VOD gets.

     

  4. Re:also some games have in game money by AK+Marc · · Score: 3, Informative

    Yes, and the kid that bought the in-app purchase without realizing it cost real money would do what? Hand the game back to daddy? Or click "yes" to any question asked to be able to play the game. I know my kids clicked yes on everything. The 7 year old just finally got to the point of understanding.

  5. Re:Response to all the complaining parents by geekoid · · Score: 2

    - Legos
    it's Lego, not Legos. My kids have thousands, and they know the plural form of Lego is Lego.
    -A Book
    Yes, they read it on an iPad, or kindle. And they have read hundreds of books.
    - A musical instrument
    It's hard to make someone practice in any way that won't make them hate it later. However; music instrament are available in my house hold. AS an example to them, I am learning how to play Bass. I use the iPad for sheet music, tabs, and recording.

    - A "300 in 1" electronics set
    well, we have Arduino's, and basic electronic is mandatory learning in my house. Just enough top see if they are intersted. Build something simple, soldier a little, and know the Basics of Ohm's law. They also use in iPad to get info and learn electronics.

    "- Whatever the latest cool educational toy is"
    that would be the iPad.

    "- Better yet, send them out to the backyard to play so their BMI doesn't doom them before they're teenagers."
    Going outside doesn't changes weather or not the kid will have high BMI. Their eating habits do. A child the plays simply eats more.

    Also, they play game on the iPad.

    The issue here is you. You seem oblivious that for a while there where a loit of apps that disguised in game purchase. I understand Apple may have recently made changes to stop that.

    Apple claims to vet all apps, so when an app geared toward 7 year olds is on their store, and that app disguises in app purchase, I ave a hrd time blaming the parents.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  6. 15 minute authorization window closed long ago ... by perpenso · · Score: 4, Informative

    Game purchase authorized. What Apple didn't in general tell people is that that authorization would last past the initial purpose, unless the user dug deep in Settings to turn that feature off.

    I believe this was fixed long ago in an iOS update. The app authorization no longer works for in-app authorization. Once in the app a second authorization is always needed for an in-app purchase. This second authorization for the in-app purchase does seem to create a window of approval for subsequent in-app purchases, however the original app purchase no longer creates such a window. In any case the parent is aware that the app has in-app purchases.

  7. Dev asking question - fully paid and lite version? by perpenso · · Score: 2

    Give me examples of good in app purchases!

    I have a calculator app that offers scientific, statistics, business, hex and bill/tip functionality in a single app, Perpenso Calc. There are two versions. A fully paid version and an upgradable lite version.

    The fully paid version includes everything, there are no in-app purchases and there are no ads. It is offered at a bundled price point so that it is less expensive to purchase the fully paid version than to buy all the in-app purchases separately.

    The upgradable lite version only includes the scientific functionality. However this scientific mode does include fractions, complex numbers and other things not found in the built-in calculator. Statistics, business, hex and bill/tip functionality are each available through separate in-app purchases. You may tailor the app's functionality to your specific needs. Again, note that at some point it may be cheaper to purchase the fully paid app given its bundled pricing.
    This lite version also displays ads. There is an upgrade to full mode via an in-app purchase that removes ads, enable RPN entry and some other features.

    Personally I like this two app strategy. A fully paid app at a bundled price point and an upgradable lite app. The upgradable lite app's built-in scientific mode serving as a trial for those considering the fully paid app if they are unsure.

    I plan on continuing to use the two app strategy in the future. I would be very eager to hear any criticisms of this approach or any alternatives?

  8. idiot? by internerdj · · Score: 2

    My parents trusting me with far more expensive computers as a toddler played a key role in my love of technology and eventual career. A few hundred bucks today is going to be much cheaper than having to keep a lib-arts major in my basement till he's in his mid 30s.