Apple to change its billing practices to require consent from consumers before charging them for in-app purchases.
Announced by the FTC on Wednesday, Apple Inc will refund consumers at least $32.5 million to settle a longstanding complaint that the technology company billed US consumers for charges incurred by children buying mobile apps without their parents' consent.
Specifically, the complaint charged Apple with violating the FTC Act by not telling parents that entering a password to approve an initial in-app purchase would allow 15 minutes of additional purchases without further authorization needed.
The FTC said that Apple had received thousands of complaints about children having made unauthorized in-app purchases that added up to millions of dollars. For example, the case of a consumer whose daughter spent $2,600 in the app "Tap Pet Hotel," and other instances of children incurring more than $500 in charges in the apps "Dragon Story" and "Tiny Zoo Friends."
It is expected that by March 31 Apple will revise its billing practices.
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