Apple Settles In-App Purchase Lawsuit, Offers iTunes Credits and Refunds to Parents

NewImageApple has settled a lawsuit brought in 2011 after children ran up hundreds of dollars in spending on in-app purchases in freemium games.

The company will give iTunes credits to parents who claim their minor bought in-app items without permission and the option of cash refunds for claims over $30.

Reports GigaOm:

The proposed settlement comes after parents sued Apple in 2011 upon discovering that their minor children had racked up credit card charges in supposedly free games. The issue was the subject of a Daily Show feature about a father whose kids racked up hundreds of dollars to keep virtual fish alive in a game called “Tap Fish.”

[…]

In order to collect under the settlement, Apple users will have to attest that a minor bought “game currency” and that the user did not provide the minor with the Apple password.

The FTC looked into parental concerns over in-app purchases, but apparently let the lawsuit run its course before acting. The agency has examined other issues with kids using mobile apps, particularly around privacy. Late last year, the agency expanded the Children's Online Privacy Protection Act to cover mobile games and social media.

Apple will send email notices to the 23 million iTunes account holders who are affected by the settlement. The full settlement document is available on Scribd.

The company began requiring passwords for in-app purchases in iOS 4.3, soon after concerns over unauthorized purchases came to light. In-app purchases can now also be shut off entirely.

Top Rated Comments

(View all)
Avatar
97 months ago
"but I gave my child full access to my phone, and my child did something I didn't want my child to do. WAHHHHHHH IT'S YOUR FAULT APPLE"
Score: 44 Votes (Like | Disagree)
Avatar
97 months ago
How is this Apple's fault?
Score: 32 Votes (Like | Disagree)
Avatar
97 months ago

More like parenting fail. I rarely am on Apple's side on some issues, but this is one where parenting needs to happen. Things as common as telling your kids, don't buy stuff even if its the game are common sense.

Parenting now a days is easier than ever and yet, parents keep finding the blame anywhere but themselves.

it's not as straightforward as that.

Many games were designed to take advantage of this fact by making the in-app-purchase deceptively easy to purchase, and it not being very clear that real money was being charged (since no password was required).

arn
Score: 26 Votes (Like | Disagree)
Avatar
97 months ago

Why can't there be an option to disable in-app purchases?


Did you read the article? There is that option now, but there wasn't at first.

I think this is partially Apple's responsibility, since they weren't requesting a password when the in-app purchasing feature was first added, making it too easy for kids to make unauthorized purchases.
Score: 24 Votes (Like | Disagree)
Avatar
97 months ago
Parents out there

Stop spoiling your kids!

Go throw them outside and let them play for Christ sake!

Why back in my days we'd play till it got dark not on our devices.
Score: 23 Votes (Like | Disagree)
Avatar
97 months ago

How much of this is just bad parenting?


At least 95%
Score: 21 Votes (Like | Disagree)

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

Apple May Release 4G-Only iPhone 12 in Early 2021

Tuesday August 11, 2020 5:28 am PDT by
In a research note shared by Business Insider, Wedbush Securities analysts said that Apple may release a cheaper iPhone 12 in early 2021 with no 5G connectivity. Wedbush initially believed Apple would launch a mix of 4G and 5G iPhone 12 models this fall. Following re-examination of Asian supply chains, analysts Daniel Ives, Strecker Backe, and Ahmad Khalil revised the predictions,...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Apple Believes This German Cycling Path Logo Infringes on Its Own Logo

Wednesday May 1, 2019 9:51 am PDT by
Apple recently objected to the logo of a new German cycling path in an appeal filed with the German Patent and Trademark Office, according to German outlets General-Anzeiger Bonn and Westdeutscher Rundfunk. Apple reportedly takes issue with the logo's green leaf and supposed "bitten" right side, attributes the company believes are too similar to its own logo. The logo, registered with the ...

Apple Seeds First Public Beta of watchOS 7 to Public Beta Testers

Monday August 10, 2020 10:33 am PDT by
Apple today seeded the first public beta of an upcoming watchOS 7 update to public beta testers, one week after seeding the fourth beta to developers and a month and a half after the Worldwide Developers Conference. The update can be downloaded after installing the proper profile from Apple's Public Beta website. watchOS 7 should not be installed on a primary device as it is still an early...

Apple Watch Likely to Adopt MicroLED Display Technology in 3-4 Years

Monday August 10, 2020 2:55 am PDT by
This year's Apple Watch Series 6 is expected to feature an OLED screen like previous models, but a future model is likely to be the first Apple product to adopt MicroLED display technology, albeit not for another three to four years. That's the main takeaway reading between the lines of comments made by the chairman of Epistar, Taiwan's top LED producer, which is reportedly working on a...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...