Apple to pay $32.5 million to settle in-app purchases lawsuit
This entry was posted on Wednesday, January 15, 2014.
There had been a furor about the ease with which in-app purchases could be used to rack up huge credit card bills with little warning about it a few months ago. The proliferation of freemium apps has led to in-app purchases being more common than ever, and it made it more likely than ever for anyone to max out someone’s credit card on the App Store with in-app purchases (inadvertently or not) with little chance of a refund. This became a systemic issue when kids using their parents’ iPads ended up racking up bills as much as $2600 according to recent reports, and a lawsuit filed against Apple in the Federal Trade Commission over this regard has ended with Apple having to pay $32.5 million to settle the case. Read on to know more.
Over the course of this lawsuit, one parent claimed that her daughter had spent over $2600 in a game known as ‘Tap Pet Hotel’, where players build hotels for their pets. Other parents claimed of their kids spending over $500 in games like ‘Dragon Story’ and ‘Tiny Zoo Friends’.
Over the course of this entire suit, Apple has been forced by the FTC to make it more clear in the App Store about which apps have in-app purchases in them right before the download. While this may be detrimental to their business in some ways, it certainly benefits customers, especially those with kids.