WORLD
Apple to refund $36.5 million for children`s app purchases
Baku, January 16 (AZERTAC). Apple has agreed to refund at least $US32.5 million ($A36.36 million) to US customers for children`s purchases from its online App Store without parental consent, US regulators say.
The Federal Trade Commission said Apple also agreed to modify its practice - which until now had allowed children to make purchases on an iPhone or iPad 15 minutes after a password was entered.
FTC chairwoman Edith Ramirez said Apple failed to inform parents of the 15-minute window that could allow children to make purchases ranging from one US dollar to $US100 for each app.
Ramirez told reporters that because of the loophole, “children ran up millions of dollars in charges without their parents` knowledge and consent,” a violation of federal rules.
Consumers “will be obtaining full redress” for any unauthorised charges, she added.
Ramirez said the FTC believes there are “many thousands of consumers which were impacted” and could get refunds.
She said the consent decree signed with Apple sets a minimum of $US32.5 million, with no maximum. But if the refunded amount is less than $US32.5 million, the balance will be paid to the regulatory agency.
Apple chief executive Tim Cook, in a letter to employees obtained and posted by the website 9to5mac, said the company has already been following the practices requested by the US regulators.
Cook`s memo said Apple had “heard from some customers with children that it was too easy to make in-app purchases, so we moved quickly to make improvements.”
He said the company sent emails to 28 million App Store customers offering refunds and that “when some emails bounced, we mailed the parents postcards.”
She said under the agreement, Apple must notify parents of the 15-minute window that allows further app purchases after a password is entered.