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Kids download apps without parental consent, Apple coughs up $32.5 million in refunds

It may be great that children today are so computer and tech-savvy, but for all good things, there is a downside.

Kids play on iPhone
(Image via Honest to Nod)

It turns out kids have been downloading apps and making in-app purchases without their parents’ consent. What does this mean? A lot of money that consumers were forced to pay for things they didn’t actually approve purchasing.

On January 15, Apple settled a Federal Trade Commission (FTC) complaint due to charges incurred by kids’ downloads without parental consent.

Apple offers many ways kids can make in-app purchases ranging from 99 cents to $99.99. Many of these include virtual items or currency used to play a game.

Kids play iPad
Kids can make in-app purchases on Apple devices without parental consent.

What the FTC argued was that Apple failed to tell parents that by entering a password once, they were approving not only a single in-app purchase, but also 15 minutes of additional unlimited purchases that their children could make without any further parental action.

It also failed to tell consumers that by entering the password just once, they were finalizing the purchase.

According to a press release, one user reported that her daughter spent $2,600 in an app called “Tap Pet Hotel.”

iPhone purchases

Consumers reported millions of dollars in unauthorized Apple charges.

The settlement requires Apple to pay back full funds totaling at least $32.5 million and it must also modify its billing practices to ensure consumer consent and allow them to withdraw consents at any time.

In the meantime, parents: Watch what your kids are doing while they play on any gadgets.

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