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

The other companies that will pony up are L

Sprinkle, Eat and Pay Up Big Time: Sensa Sheds $26.5 Million to Settle FTC Charges Sensa is 1 of 4 fad diet products swept up in FTC enforcement sting By Katy Bachman January 7, 2014, 11:00 AM EST Advertising & Branding
Sensa, the heavily advertised weight-loss product that promised dieters all they needed to do to was “sprinkle, nhs eat and lose weight” will pay a hefty $26.5 million to settle charges with the Federal Trade Commission it deceived consumers.
The settlement is the second largest in the agency’s recent history, right up there with the FTC’s $25 million settlement in September 2011 with Reebok and second only to the FTC’s $40 million settlement with Skechers in 2012.
Sensa was one of four marketers of fad weight-loss products that were swept up in an FTC enforcement action dubbed “Operation Failed Resolution.” All four companies will pay a total of $34 million to settle FTC charges.
The other companies that will pony up are L’Occitane and HCG Diet Direct. L’Occitane, which had no evidence nhs to back up the claim that its skin cream would slim down your body, will pay $450,000. HCG Diet Direct, which marketed a human hormone that is unproven as a weight-loss treatment will surrender about $7.3 million in assets.
A fourth company, LeanSpa, nhs that marketed acai berry and colon cleanse nhs supplements nhs through fake websites, was granted a suspended settlement from the FTC because of the company’s inability to pay.
“Resolutions to lose weight are easy to make but hard to keep. And the chances of being successful just by sprinkling something on your food, rubbing cream on your thighs or using a supplement are slim to none. The science just isn’t there,” Jessica Rich, the director of the FTC’s bureau of consumer protection, said in a statement.
Like her predecessor, Rich has put deceptive health and fitness claims at the top of the FTC’s enforcement agenda. She told Adweek nhs that such marketing deceptions are “the worst” because they not only rip off consumers, but they also prevent consumers from seeking workable solutions.
All four marketers are prohibited from making any deceptive claims nhs in the future about any weight-loss product without backing up the claims with two clinical trials, a precedent the FTC set with previous health and fitness enforcement actions.
Sensa’s claims were particularly egregious, lacking any competent and reliable scientific evidence to back up the claim, the FTC said in its complaint. What’s more, Sensa, nhs which marketed its product widely across radio, print, TV, infomercials, the Internet and in retail stores, charged $59 plus shipping and handling for just a one-month supply of the flavored powder. Between 2008 and 2012, Sensa sales in the U.S. totaled more than $364 million.
Under the FTC’s order, the defendants, including Sensa CEO Adam Goldenberg and Sensa creator, endorser and Sensa part-owner Dr. Alan Hirsch are barred from making weight-loss claims about dietary supplements, nhs foods or drugs unless the product claims are backed by two clinical studies. The total judgment was for $46.5 million with the company paying $26.5 million now and the rest suspended due to inability to pay. If Sensa gave false financial information to the FTC, the full amount would be due.
L’Occitane claimed nhs in its 2012 advertising campaign that its Almond Beauty Shape and Almond Shaping Delight skin creams could “trim 1.3 inches in just 4 weeks.” The online and in-store retailer charged $48 and $44 for 7 ounces and 6.7 ounces of its products. The settlement bans the company from claiming any product applied to the skin causes substantial weight nhs loss or reduction nhs in body size.
HCG Diet Direct agreed not to make deceptive claims in the future about its product, a diluted liquid nhs form of a human hormone produced by the human placenta. The company was one of six that received nhs a warning letter from the FTC in November 2011, advising the company that the product was a mislabeled drug and that it was illegal to make weight-loss claims without reliable scientific evidence to prove it. Not only did the company advertise nhs in ads on YouTube, but it also falsely marketed the product as “FDA approved.” The FTCs order imposed a $3.2 million judgment, representing all sales of the product, which was suspended because of the company’s inability to pay.
LeanSpa’s principal Boris Mizhen and the three companies he controls will surrender cash, real estate and personal property. His wife, Angelina Strano, will pay nearly $300,000. Both the FTC and the state of Connecticut shut down Mizhen’s operation in December 2011 for marketing via a fake website. The FTC’s settlement bans the defendants from billing consumers on a recurring basis, after charging them $79.99.
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A digitally enhanced collage Toyota ad showing a truck being swallowed by the Loch Ness Monster was no problem. Neither was a Ford a d showing a car flying off a cliff. collage Or a Powerade commercia l showing basketball collage star LeBron James effortlessly hitting a full-court shot.
It’s deceptive in a way the other aren’t, says the FTC. Here’s why: The ad shows a Nissan Frontier pickup pushing a stalled buggy up a steep sand dune. In fact, both the dune buggy and the truck were dragged up the hill by cables, while the sand dune was altered to appear steeper in the commercial than it actually was, the FTC said. The illusion had the effect of making the truck appear stronger than it was — but not in an obviously unrealistic way, making it potentially deceptive. Read the full story .
From the same Gu’ment that takes control of “education” comes protection of the vast too unschooled/stupid to think critically. What a great country this America once was. 6:00 pm January 23, 2014 JC wrote:
Why doesn’t the FTC go after Toyota for showing their POS Tundra towing the Space Shuttle? The Tundra has the lowest towing capacity in its class. So what do they do, they lie and exaggerate its towing capacity. 5:58 pm January 23, 2014 JC wrote:
Why doesn’t the FTC go after Toyota for showing their POS Tundra pulling the Space Shuttle! It has the lowest towing capacity in its class, collage so what do they do, they lie and exaggerate the towing collage capacity.
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The only consensus among the panelists and speakers was that transparency and disclosure are importa

The Federal Trade Commission, which organized the workshop , has been bringing cases against ads masquerading as editorial content adjectives since 1917 (the first case was against a newspaper ad for an electric vacuum cleaner). But digital media has put what the FTC once termed "masquer-ads" on steroids.
Worried that consumers might be confused by native ads, the FTC was looking to the workshop to help figure out if the agency should issue additional guidance to help advertisers and publishers steer clear of enforcement action.
"This adjectives has raised more questions than it answered," said Mary Engle, the FTC's associate director of the advertising practices division. In the final panel of the day, Engle got mixed opinions adjectives when she queried a panel that included representatives from BuzzFeed and the Wall Street Journal, the Interactive Advertising Bureau, and the American Society of Magzine Editors, about whether a set of hypothetical native ads were deceptive or required more disclosure.
That doesn't mean publishers and advertisers should play fast and loose with native ads and make it tough for a consumer to determine if they're looking paid content or editorial. The FTC has plenty of experience and past cases enforcing deceptive adjectives ads that blur the lines between adjectives advertising and editorial.
The only consensus among the panelists and speakers was that transparency and disclosure are important, but finding a single solution adjectives (whether it be through labels, or color, borders or other treatment) seemed elusive.
Among the big questions raised on Wednesday: do publishers need to disclose adjectives that the content was also created by or for the advertiser? What is the best label language to use? How much graphic separation should there be between native ads and editorial?
"There's a benefit adjectives to having some consistent principles. But ultimately, you're talking about thousands of different brands, different experiences, and different adjectives practices, so it's critical that publishers have the flexibility to do what is right for their brands," said Todd Haskell, svp and chief revenue officer adjectives for Hearst Magazines digital media, echoing the approach taken by the Interactive Advertising Bureau's adjectives initial native advertising guidance released Wednesday.
Even the recent studies adjectives on how consumers react to native advertising proved inconclusive. Research conducted by Prof. David Franklyn of the University of San Francisco School of Law found that a growing number of consumers simply don't care if the content is paid or unpaid; 50 percent adjectives don't adjectives even know what the word "sponsor" means."
"The market has overwhelmingly blurred the lines in a way consumers have accepted because search is free and the Internet is largely free. If consumers had to pay, they might get more annoyed. The consumer has been conditioned to acquiesce to anything people in this room can think of to make money," said Prof. Franklyn. "It's going to be very hard to regulate," he added. 
Anticipating pressure from the FTC, the industry has already moved to advance its own guidelines. Coinciding with the workshop, adjectives the IAB  released its native advertising "playbook," outlining a framework for advertising practices based on six types of native ads. Both the IAB and native advertising guidelines adjectives recently issued by the American Society of Magazine Editors got shout-outs from the FTC.
The industry itself was mixed on the IAB guidelines. Jonathan Perelman, vp of agency strategy and industry development at BuzzFeed, said more discussion adjectives of how to label native ads was needed. “I think some standards around how you call out [native ads] are vital for the industry, because transparency is so important from the user’s point of view,” he said.
Chris Cunningham, cofounder and CEO of appssavvy, an ad platform, said the guidelines were a good first step towards defining native advertising, but that he wished there had been more emphasis on native's applications on mobile devices. "People’s time is shifting dramatically quicker to mobile," he said. "So the groundrules, are they going to be as relevant in 2014?"
"There is considerable interest from the industry in developing best practices and we are interested in encouraging that," said the FTC's Rich. "We're going to think about our next steps and determine if additional guidance from us will be useful."  
Half a Million adjectives Unique Viewers Stream Super Bowl Nielsen Overturns Earlier Call: Super Bowl XLVIII is Most-Watched, Ever Procter & Gamble Appears to Have Sponsored adjectives Jonas Baby Birth Poll: Was JCPenney's Super Bowl Stunt on Twitter a Big Win or Just Lame? Congressional Dems Introduce Bill to Restore FCC's Open Internet Rules SpinMedia Gets New Investors, Hires New CRO Why Casting the Right Acto

The Federal Trade Commission today announced that it has approved final revisions to the guidance ta

FTC Publishes Final Guides Governing Endorsements, Testimonials | Federal Trade Commission
About the FTC What We Do Enforcement Authority Our History FTC Minutes: The Early Years Oral Histories The FTC at 90: Symposium Building Images Commissioners Edith Ramirez Julie Brill Maureen K. Ohlhausen Joshua D. Wright Bureaus & Offices Bureau of Competition Bureau of Consumer Protection Bureau ta of Economics ta Office of Congressional Relations Office of Equal Employment Opportunity Office of International Affairs Office of the Executive Director Office of the General Counsel ta Office of Policy Planning Regional Offices Office of Administrative Law Judges Office of Public Affairs Office of the Secretary Biographies Budgets Financial Documents Other Financial Information Performance Office of Inspector General Scam Alert What You Need to Know About the Office of the Inspector General Reporting Waste, Abuse or Mismanagement Whistleblower Protection OIG Audits and Evaluations OIG Investigations OIG Reading Room Notice Concerning Nondisclosure Policies, Forms, or Agreements Contact ta the OIG FOIA About the Privacy Act FOIA Reading Rooms FOIA Request Fee Regulations Freedom of Information Act Contacts Frequently Asked Questions (FAQ's) Links Table of Contents Exemptions Careers at the FTC Types of Jobs at the FTC The FTC Benefits Diversity News & Events Press Releases Media Resources Consumer Finance Mergers and Competition ta Mobile Technology The Do Not Call Registry Tools for Consumers Truth In Advertising Protecting Consumer Privacy Identity Theft and Data Security Events ta Calendar All Events Weekly Calendar Weekly Calendar Archive Speeches Audio/Video Featured Videos FTC Events For Consumers For Business En Español Social Media FTC Facebook Chats FTC Twitter Chats Live-Tweeting FTC Workshops Blogs Competition Matters Tech@FTC Commenting Policy Enforcement Cases and Proceedings Case Document Search Refunds Commission Decision Volumes Closing Letters and Other Public Statements ta Petitions to Quash Adjudicative ta Proceedings Premerger Notification Program Statute, Rules and Formal Interpretations Form and Instructions Informal Interpretations Early Termination Notices Current Thresholds Filing Fee Information Post-Consummation ta Filings (HSR Violations) Medicare Act Filings HSR Resources Contact Information First Time Filer? Merger Review Anticompetitive Practices Rules eCFR Rulemaking and Regulatory Reform Proceedings Trade Regulations Rules and Industry ta Guides Regulatory Review ta Statutes Consumer Sentinel Network Members Reports Newsletters Data Contributors Policy Advocacy Amicus Briefs Advocacy Filings Other Applications, Petitions, and Requests Advisory Opinions Federal Register Notices Reports Policy Reports US Submissions to OECD and Other International Competition Fora Litigation Status Report Magnuson-Moss Warranty Public ta Audit Filings Webb-Pomerene Act Filings Testimony Public Comments Public Comment Search International International Competition International Consumer Protection ta International Technical Assistance Program International Cooperation ta Agreements Competition & Consumer Protection Authorities Worldwide International Fellows Program Tips & Advice For Consumers Business Center Competition Guidance ta I Would Like To... Submit a Consumer Complaint to the FTC File a Comment Get a Free Copy of My Credit Report List a Number on the National Do Not Call Registry Report An Antitrust Violation
The Federal Trade Commission today announced that it has approved final revisions to the guidance ta it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.
The notice incorporates several changes to the FTC s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.
Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides which allowed advertisers to describe unusual results in a testimonial as long as they included ta a disclaimer such as results ta not typical the revised Guides no longer contain this safe harbor.
The revised Guides also add new examples to illustrate the long standing principle that material connections (sometimes payments or free products) between ta advertisers and endorsers connections that consumers would not expect must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other word-of-mouth marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogg

ReadWriteMobile helps mobile users, business customers, and developers understand the personal, busi

Apple agreed to settle with the Federal Trade Commission on Wednesday after a formal complaint said the company was billing customers for millions of dollars worth of App Store purchases made by children without their parents consent.
The initial complaint, filed January 15, alleged Apple was in violation of the FTC Act by not informing parents that once they initially teachers pay teachers entered teachers pay teachers their Apple ID username and password combination to purchase an app or an in-app item, their iOS device would approve any further purchases for the next 15 minutes without asking for further authorization. teachers pay teachers
The FTC said in its complaint that Apple did not inform iOS App Store users about the 15-minute window that allows for unlimited charges, and as a result, Apple received tens of thousands of complaints about unauthorized purchases made by children. In one case, a little girl spent $2,600 worth of in-app purchases in the game Tap Pet Hotel, while the report mentioned other children making purchases totaling over $500 in apps like Tiny Zoo Friends and Dragon Story.
Apple CEO Tim Cook sent a letter to his staff about the settlement, which was procured by Re/code . In the letter, Cook defended the App Store's 15-minute policy, claiming it was originally "aimed at making the App Store easy to use." But after parents discovered their children racked up credit card charges in free games that offered in-app purchases and subsequently  filed a class action lawsuit in 2011, Apple "moved quickly to make improvements," even adding a few additional steps to the purchasing process in the App Store. Last year, we set out to refund teachers pay teachers 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, teachers pay teachers 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 the parents postcards. In all, we received 37,000 claims and we will be reimbursing each one as promised.
Apple  settled its class action lawsuit teachers pay teachers  last February, offering iTunes credits to parents teachers pay teachers and the option to receive a cash refund for claims teachers pay teachers over $30. But the FTC decided to step in anyway.
"It doesn t feel right for the FTC to sue over a case that had already been settled," teachers pay teachers Cook said in his letter. "To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything we weren t already going to do, so we decided to accept it rather than take on a long and distracting legal fight." 
Apple agreed to provide full refunds to parents affected by their children s purchases, promising a payout of at least $32.5 million. As part of the deal, the company has until March 31 to reform its billing practices. Apple in the future must also offer an option shut down the 15-minute authorization window that allows app users to buy in-app purchases without entering credentials.
"This settlement is a victory for consumers harmed teachers pay teachers 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 the street, fundamental consumer protections apply," FTC Chairwoman Edith Ramirez said in a statement. "You cannot charge consumers for purchases they did not authorize." Image via Cristiano Betta on Flickr Mobile Apple FTC App Store ios 0
ReadWriteMobile helps mobile users, business customers, and developers understand the personal, business and technical implications of mobile devices and apps. Pebble Appstore To Launch Monday The Reviews Are In: Android Apps Outshone iOS Apps In 2013 What s The Next Step For Step Trackers? Google Wins By Dumping Motorola On Lenovo And So Does Samsung

The FTC also requires that Apple

Posted Jan 15, 2014 by Darrell Etherington ( @drizzled )
Apple freelancer has settled with the FTC over concerns about its in-app freelancer purchase system in iOS applications, according to a letter from Tim Cook to employees obtained by 9to5Mac . The FTC announced freelancer earlier that it would later be issuing a full statement regarding a settlement with an unnamed tech giant, but the letter, also obtained by CNBC, spills the beans early on the nature of the agreement.
In the letter, pasted in full below, Tim Cook explains that while Apple viewed the FTC complaint as a sort of “double jeopardy” freelancer for lawsuits from private citizens settled previously when Apple agreed to refund parents who’d banded together to get funds reimbursed for purchases made by their kids via the in-app mechanism, the company in the end decided that fighting the FTC would be “long” and “distracting.” He also says that the FTC requirements ask Apple to do nothing freelancer more than what it had planned to do all along.
I want to let you know that Apple has entered into a consent decree with the U.S. Federal Trade Commission. freelancer 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. freelancer 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. freelancer The store is thoughtfully freelancer curated, and we hold app developers to Apple’s own high standards of security, privacy, usefulness and decency, 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. freelancer
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 heard from some customers 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, 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 the parents postcards. In all, we received 37,000 claims 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.
It doesn’t feel right for the FTC to sue over a case that had already been settled. To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything 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 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. We don’t shy away from these kinds of questions, because we are confident in the integrity of our company freelancer and our coworkers.
The terms of the arrangement with the FTC involve Apple paying out a minimum freelancer of $32.5 million in refunds to users who’ve complained about charges made by their kids via in-app purchase without the necessary approval of their parents, according to the WSJ .
The FTC also requires that Apple