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Apple agrees to $32.5 million settlement with FTC over unauthorized in-app purchases

Wednesday, 15th January 2014 20:40 GMT By Stephany Nunneley

Apple has agreed to pay out a minimum of $32.5 million in order to settle a Federal Trade Commission complaint which will honor a class action lawsuit settlement. The initial suit was filed over bills containing in-app purchases made without parental permission to underage users.

Back in February 2013, Apple agreed to settle the lawsuit by offering those affected by unknown in-app purchase costs a $5 credit voucher for iTunes, and where the costs exceed $30, a cash refund. The settlement was said to concern some 23 million customers.

At the time, the FTC complaint stated Apple’s billing practices were unfair, and during a conference call to reporters today, FTC chair Edith Ramirez announced the government body had settled the issue with Apple

“The payments must reach a “$32 million price floor, and if it comes to less, then Apple will pay the rest to the FTC,” said Ramirez.

“The settlement requires Apple to modify its billing practices to ensure that Apple obtains consumers’ express, informed consent prior to billing them for in-app charges, and that if the company gets consumers’ consent for future charges, consumers must have the option to withdraw their consent at any time. Apple must make these changes no later than March 31, 2014.”

Thanks, ArsTechnica.

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3 Comments

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  1. rockman29

    Apple makes $4250 per second, so they will be able to recuperate that fine within 2 hours.

    #1 3 months ago
  2. xxxGamesMasterxxx

    Why should Apple have to pay for parental negligence?

    http://cdn.ripten.com/wp-content/uploads/2013/03/free-not-absolutely-free1.jpg

    #2 3 months ago
  3. GrimRita

    #2 I agree. However some developers did take the piss especially with achievements

    ‘Buy 1000 coin pack’ achievement – are the kind of things they need to be outlawed. Some parent just love to pass responsibility to others to hide their own stupidity.

    I wonder how many actually know about and are using the parental controls to prevent kids making IAPS?

    #3 3 months ago