Apple will
refund at least $32.5 million to consumers to settle a federal case involving
purchases that kids made without their parents' permission while playing on
mobile apps, the government announced Wednesday.
The Federal
Trade Commission said Apple will make
full refunds for any such in-app purchases made by kids while playing on mobile
phones and other devices, and incurring charges without parents' knowledge or
permission.
The
commission said it had received tens of thousands of complaints about
unauthorized charges.
Edith
Ramirez, the agency's head, said the settlement only involves children's mobile
apps and charges racked up when kids bought things such as virtual currency or
dragon food. In some cases, Ramirez said, charges ran into the hundreds and
even thousands of dollars.
The $32.5
million is the minimum that Apple would pay. As part of the settlement, Apple
is required to pay full refunds to consumers for kids' unauthorized purchases,
so the number could go higher. If it doesn't rise to $32.5 million, the
difference would be paid to the Federal Trade Commission , Ramirez said.
The Federal
Trade Commission said the apps included
a 15-minute window in which passwords were not needed to make the purchases,
but that Apple did not inform users about that.
