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Apple settles with FTC over in-app purchases, will refund $32.5 million

by TabTimes Staff

January 15 2014

Apple agreed to refunds of at least $32.5 million to settle charges that it unfairly billed parents for their children's in-app purchases, the Federal Trade Commission announced.

The FTC charges centered on allegations that Apple didn't obtain parents' consent to the purchases before billing them.

Apple's iTunes store requests that an account holder enter a password before making an initial in-app purchase, but the company often saves those passwords for up to 15 minutes during which time children were able to rack up charges. 

One children's app highlighted by the FTC, Dragon Story, sells virtual "gold" for as $99.99.

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