Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Apple in-app purchase settlementUPDATE 1: Apple began emailing refund instructions for the FTC iTunes settlement in early April.

UPDATE 2: Viewers have reported that they received their $5 Apple iTunes In-App Purchase settlement reimbursement

Apple Inc. has agreed to pay at least $32.5 million to consumers to settle a federal lawsuit involving charges incurred by children from mobile apps without their parents’ consent, the Federal Trade Commission announced Wednesday.

Following an investigation into Apple’s billing practices, the FTC determined that it was easy for children to make in-app purchases without first obtaining their parents’ permission, even if the app was password-protected.

The FTC indicated it had received tens of thousands of complaints from parents about unauthorized charges from in-app purchases their children made within apps such as “Tiny Zoo Friends” and “Dragon Story.” Often, it is free to download these apps. However, many of these apps offer the ability to purchase virtual items that cost real money. In some cases, the charges amounted to thousands of dollars. One consumer reported that her child spent $2,600 for in-app purchases in “Tap Pet Hotel.” According to the FTC, consumers have reported millions of dollars in unauthorized Apple charges.

The agency clarified that the Apple in-app purchase settlement only involves children’s apps and the charges incurred when children purchased virtual currency or other virtual items. Many of these apps are free to download. The charges for these items range from between 99 cents to $99.99 per in-app charge.

The FTC said that these children’s apps had a brief 15-minute window of time in which passwords were not required to make purchases. However, the agency says Apple failed to warn users about that feature. The FTC also alleged that Apple sometimes presents a screen for a user to enter a password without informing the user that the password entry would finalize a purchase.

Under the terms of the Apple in-app purchase settlement, Apple will provide full refunds to consumers who were billed for accidental or unauthorized in-app charges made by children. Apple also agrees to provide electronic notice to potentially-affected users prior to March 31, 2014, giving them instructions about how to obtain a refund for their eligible in-app purchases.

The Apple in-app purchase settlement requires Apple to adjust its billing practices to ensure that it obtains consumers’ express, informed consent before billing them for in-app purchases. Further, Apple must allow consumers to withdraw their consent from future charges at any time.

“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 protections apply,” FTC Chairwoman Edith Ramirez said in response to the Apple in-app purchase settlement. “You cannot charge consumers for purchases they did not authorize.”

If the total amount of refunds from the in-app purchase settlement is less than $32.5 million, Apple must pay the balance to the FTC.

After the FTC announced that it was conducting an investigation into Apple’s billing practices in 2011, several consumers filed class action lawsuits against the company. In May 2013, a federal judge approved a class action settlement that would give eligible consumers a $5 iTunes store credit or cash payment.

Details on how to receive a refund through the FTC Apple in-app purchase settlement were not immediately available. Keep checking www.TopClassActions.com for updates. The deadline to file a claim for the consumer class action settlement approved last year has passed. See more information here.

 

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.


2 thoughts onApple Agrees to $32.5M In-App Purchase Settlement with FTC

  1. Top Class Actions says:

    UPDATE 2: Viewers have reported that they received their $5 Apple iTunes In-App Purchase settlement reimbursement!

  2. Top Class Actions says:

    UPDATE 1: Apple began emailing refund instructions for the FTC iTunes settlement in early April. More info: http://topclassactions.com/lawsuit-settlements/lawsuit-news/23065-apple-sends-app-purchase-refund-instructions-itunes-users/

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.