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

[MacRumors]

Apple 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.

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

[Squilly]

How is this Apple's fault?

[komodrone]

"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"

[jav6454]

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.

[whammink]

How much of this is just bad parenting?

[MultiMediaWill]

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

[madsci954]

Originally Posted by whammink

How much of this is just bad parenting?

At least 95%

[coolfactor]

Originally Posted by MultiMediaWill

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.

[Radio]

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.

[Squilly]

Originally Posted by coolfactor

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.

Ummm.... stealing a credit card?

[SAdProZ]

Our sense of entitlement is out of proportion.

[ELMNT925]

Originally Posted by Radio

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.

ohhh you mentioned christ. im offended. lets see how fast the mods take it down.

[Weerez935]

Originally Posted by coolfactor

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.

They probably thought people who could afford a 700$ phone or a 2000$ contract wouldn't have a problem with a .99$ app.

It is not apples fault that parents gave their children access to their credit card. iTunes/ Xbox/ PayPal/ amazon etc do the same thing.

[TsMkLg068426]

Bunch of lazy parents.

[Popeye206]

Originally Posted by whammink

How much of this is just bad parenting?

Yeah, but not suing Apple means you take responsibility for your own actions and children. Besides, Apple has deep pockets... they deserve to be sued!

Only in America!

[Fresh Pie]

Perhaps someday these kids will grow up and sue their parents for negligence and a lack of ability. Based on articles like this, the courts will side with the kids, who will receive plenty of compensation from their parents. They will then use this money to buy things from Apple.

Thus completing the circle of stupidity. Yep, Apple is playing the long game.

[PinoyAko]

Americaaaaaaa!!!

[Radio]

Originally Posted by ELMNT925

ohhh you mentioned christ. im offended. lets see how fast the mods take it down.

This forum is secular

[Dave-Z]

In my opinion, Apple isn't responsible to reimburse the parents.

If you link your credit card to your iTunes account you're inviting its use. You wouldn't give your credit card to your child and send him/her into a mall. This is no different.

[realeric]

Originally Posted by Squilly

How is this Apple's fault?

It wasn't but it is now. Apple stored the credit card number and let children use the number without parent's approval.

[underkuerbis]

Of course this isn't Apple's fault. But it's only logical for them to appease the ones affected and create (possibly even positive) media coverage.
Legit.

[arn]

Originally Posted by jav6454

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

[pacalis]

Ha, Apple's finally found a use for all it's excess cash!

[ArtOfWarfare]

Interesting amount of blame being placed on parents.

I believe this is Apple's fault. They made the mistake of allowing IAP to be purchased without entering a password. The parent's unwittingly enter their passwords so their kids can download "free" apps (that + in the corner isn't at all intuitive. For several months I thought that meant an app was designed for iPhone and iPad.) The kids then go on to make IAPs without having to enter any passwords.

While I often agree that parents point their fingers in too many directions, this is one case where parents are in the right and the company they're suing is in the wrong.

[kmanmx]

So, if all 23 million people do claim, for an average of $10 each. Thats.. expensive.

I personally don't think it's apples fault.