Google Inc has agreed to pay full refunds totaling at least US$19 million to consumers who were charged for purchases that children made via apps without parental consent from the Google Play app store.
The settlement is part of the third case by the US Federal Trade Commission concerning unauthorized in-app purchases made by children. It settled with Apple Inc for US$32.5 million in January and it filed a complaint against Amazon.com Inc, which has said it would not settle over the charges.
In Google’s case, the commission said that since 2011, consumers have reported children had made unauthorized charges ranging from US$0.99 to US$200 within kids’ apps downloaded from the Google Play store.
Most interaction with online services on mobile devices occurs through apps, as opposed to an Internet browser, according to industry tracker comScore.
The firm estimates seven out of every eight minutes of media consumption on mobile devices is done through an app. In the US, comScore estimates that the Android operating system has 83.8 million smartphone subscribers and a further 67.4 million use iPhones.
According to the commission’s complaint, when Google introduced in-app charges to the Google Play in 2011, they were not password protected. As a result, children could buy virtual items just by clicking on pop-up boxes within an app while they used it.
In mid to late 2012, Google instituted a pop-up box that asked for a password before a payment could be made but that still opened up a 30-minute window during which a password was not required.
“For millions of American families, smartphones and tablets have become a part of their daily lives,” commission Chairwoman Edith Ramirez said. “As more Americans embrace mobile technology, it’s vital to remind companies that time-tested consumer protections still apply, including that consumers should not be charged for purchases they did not authorize.”
The settlement requires Google to provide full refunds of unauthorized in-app charges incurred Wby children of at least US$19 million within 12 months after the settlement becomes final.
Google is also required to change its billing practices to obtain express, informed consent from consumers before billing them for in-app charges.
“We’ve already made product changes to ensure people have the best Google Play experience possible,” Google said in a statement. “We’re glad to put this matter behind us so we can focus on creating more ways for people to enjoy all the entertainment they love.”
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