Following tens of thousands of consumer complaints, the Federal Trade Commission said yesterday that Apple will pay at least $32.5 million to settle a federal case involving in-app purchases. According to the MSN Money website, many children have downloaded game apps on their Apple mobile devices.
While the games may be free to download, the special items they inherit while playing these games are not. According to the article, with just by a click, a game-player can advance to a new level or buy coins, a chest of gems or treats for a virtual pet. The app then asks for a password to go further. The child turns to a parent for this information. The parent then enters this password, not realizing that they have made a purchase that can range from 99 cents to $99.
According to the FTC complaint, the problem Apple causes is that parents were not aware they were buying something on the apps. Furthermore, entering a password activates a clock that allows kids to purchase unlimitted items during 15 minitues without any further action from parents.
"You cannot charge consumers for purchases they didn't authorize," said Edith Ramirez, the commission chairwoman. Apple will have until March 31 to come up with a billing system that ensures the company obtains consumers' informed consent before billing them for in-app purchases.
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