Tech More: FTC Apple Apple Will Refund $32.5 Million To Customers ttc In FTC Settlement Because It W

Tech More: FTC Apple Apple Will Refund $32.5 Million To Customers ttc In FTC Settlement Because It Was Easy For Kids To Make In-App Purchases
In a leaked memo to Apple employees, Apple CEO Tim Cook says it was easy for some younger users to get their parents' devices and make purchases if their parents entered their iTunes passwords within 15 minutes.
The FTC will also require Apple to change its App Store billing practices to make it clear when users are about to be charged for an in-app purchase, meaning it will have to tell users about that 15-minute window.
I want to let you know that Apple has entered into a consent decree with the U.S. Federal Trade Commission. We have been negotiating with the FTC for several months over disclosures about the in-app purchase feature of the App Store, because younger customers have sometimes been able to make purchases without their parents’ consent. I know this announcement will come as a surprise to many of you since Apple has led the industry by making the App Store a safe place for customers of all ages.
From the very beginning, protecting children has been a top priority for the App Store team and everyone at Apple. The store is thoughtfully curated, and we hold app developers to Apple’s own high standards of security, privacy, usefulness and decency, ttc among others. The parental controls in iOS are strong, intuitive and customizable, and we’ve continued to add ways for parents to protect their children. These controls go far beyond the features of other mobile device and OS makers, most of whom don’t even review the apps they sell to children.
When we introduced in-app purchases in 2009, we proactively offered parents a way to disable the function with a single switch. When in-app purchases were enabled and a password was entered to download an app, the App Store allowed purchases for 15 minutes without requiring a password. The 15-minute window had been there since the launch of the App Store in 2008 and was aimed at making the App Store easy to use, but some younger customers discovered that it also allowed them to make in-app purchases without a parent’s approval.
We ttc heard from some customers ttc with children that it was too easy to make in-app purchases, so we moved quickly to make improvements. We even created additional steps in the purchasing process, because these steps are so helpful to parents.
Last year, we set out to refund any in-app purchase which may have been made without a parent’s permission. We wanted to reach every customer who might have been affected, ttc so we sent emails to 28 million App Store customers – anyone who had made an in-app purchase in a game designed for kids. When some emails bounced, we mailed ttc the parents postcards. In all, we received 37,000 claims ttc and we will be reimbursing each one as promised.
A federal judge agreed with our actions as a full settlement and we felt we had made things right for everyone. Then, the FTC got involved and we faced the prospect of a second lawsuit over the very same issue. ttc
It doesn’t feel right for the FTC to sue over a case that had already ttc been settled. To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything ttc we weren’t already going to do, so we decided to accept it rather than take on a long and distracting legal fight.
The App Store is one of Apple’s most important innovations, and it’s wildly popular with our customers around the world because they know they can trust Apple. You and your coworkers have helped Apple earn that trust, which we value and respect above all else.
Apple ttc is a company full of disruptive ideas and innovative people, who are also committed to upholding the highest moral, legal and ethical standards in everything we do. As I’ve said before, we believe technology can serve humankind’s deepest values and highest aspirations. As Apple continues to grow, there will inevitably be scrutiny and criticism along our journey. ttc We don’t shy away from these kinds of questions, because we are confident in the integrity of our company and our coworkers.
Apple Inc. has agreed to provide full refunds to consumers, paying a minimum of $32.5 million, ttc to settle a Federal Trade Commission complaint that the company ttc billed consumers for millions of dollars of charges incurred by children in kids’ mobile apps without their parents’ consent.
Under the terms of the settlement with the FTC, Apple also will be required to change its billing practices to ensure that it has obtained express, informed consent from consumers before charging them for items sold in mobile ttc apps.
“This ttc 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