Google to Refund US$19 Million to Parents for Kids’ In-App Purchases
Marco Foronda | | Sep 05, 2014 06:52 AM EDT |
(Photo : Reuters/Darren Staples) A Google search page is seen through the glases of a computer user.
Google agreed to refund some US$19 million to settle Federal Trade Commission (FTC) complaints raised by consumers whose children bought items inside of apps without parental consent.
FTC will leave the Mountain View, California-based company with the US$19 million figure as per terms of the settlement.
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Google, however, must improve its billing practices and remit invoices for the payouts.
The settlement will run for 20 years from the date a document is filed.
Google needs to report to the FTC any organizational changes that might affect its ability to maintain the billing standards set by the agreement during the settlement period.
According to the FTC, a lot of mobile apps from Google Play are used by children. These apps include items available for purchase like fish food. Prices range from 99 cents to US$200.
The company received thousands of complaints regarding unauthorized charges made by children.
The reports said one parent called Google to complain his account had been hacked, not realizing his children made unauthorized purchases while playing the game "Tiny Monsters."
The FTC complaint is referred as to as "friendly fraud" and "family fraud."
Google is the latest company to receive FTC complaints over unauthorized in-app purchases. , Apple and Amazon have been hit by similar complaints.
In January, Apple refunded US$32.5 million to consumers. Amazon was sued in July for failing to get permission from parents for charges incurred by children.
Google said it was pleased to resolve the FTC complaints.
TagsAmazon, Apple Inc., App, in-app purchase complaints, FTC complaints, Google refund
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