This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.
CNET News Video: Apple to refund unauthorized in-app purchases
About Video Comments (0 ) Transcript

CNET News Video: Apple to refund unauthorized in-app purchases

1:56 /

It's welcome news for parents with app-happy kids. Apple agrees to comply with a Federal Trade Commission order requiring the tech company to issue at least $32.5 million in reimbursements for in-app purchases made by kids without parental consent.

-If you have a smartphone or tablet, then you've encountered what's called an in-app purchase. -Everyone expects an app to be free. And so, developers are left trying to make money within the apps themselves by selling things like, you know, leveling up with any game, extra coins, extra power. -While many kids' games in the Apple app store are free, parents can end up paying a lot more for in-app purchases, especially when kids buy things without their consent. Now, in a settlement with the Federal Trade Commission, Apple has agreed to provide full refunds to parents whose kids made unauthorized purchases. Apple will pay out at least $32.5 million. According to the FTC, Apple has received tens of thousands of complaints, including one from a parent whose daughter spent $2,600 in the app, Tap Pet Hotel. In a statement, Apple said protecting children has been an app store priority. And that, quote, "today's agreement with the FTC extends our existing refund program for in-app purchases, which may have been made without a parent's permission." In a memo to employees leaked online, Apple CEO, Tim Cook, explained that Apple has already sent e-mails to 28 million app store customers, and plans to reimburse the 37,000 claims received. He said, quote, "The consent decree the FTC proposed does not require us to do anything we weren't already going to do. So, we decided to accept it rather than take on a long and distracting legal fight." Aside from talking to your kids, parents can take steps to prevent in-app purchases. -If you check your settings, you make sure you turn off in-app purchases or that you have to authorize them. Or you can just make sure that you never ever tell your kids your password. -Apple must also change its billing practices to make sure it gets expressed informed consent before billing a customer for in-app charges. In San Francisco, I'm Sumi Das, CNET for CBS News.

New releases

Hack attack: Apps can spy on other...
2:54 August 22, 2014
Researchers reveal a flaw in Android, iOS and Windows that lets hackers peer into Gmail, Chase and other apps....
Play video
The 404 Show 1,541: Look away from...
37:36 August 22, 2014
Steve "Sphere" Guttenberg is back on the show today for a discussion about why he thinks technology is making...
Play video
2014 Toyota Highlander Hybrid
9:18 August 22, 2014
Is the 2014 Toyota Highlander Hybrid just a big Prius or much more? Brian Cooley drives the sleek new SUV...
Play video
Toughest smartphones
2:56 August 22, 2014
Need a phone that can take a beating? Here are five smartphones that can take anything you can throw at t...
Play video
Logitech's Bemo an oddball video...
1:32 August 22, 2014
One-button video capture matched with a nice viewing and editing app adds up to a fun little camcorder if...
Play video
How the iPhone, Android, and Facebook...
39:39 August 22, 2014
We celebrate 400 episodes with a look at the iPhone, Android, Facebook and the technology that's changed your...
Play video
Back-to-school tech discounts
1:02 August 22, 2014
School supplies no longer mean some pencils and erasers. Expensive gadgets like laptops and tablets have stepped...
Play video
All the latest iPhone 6 rumors
6:34 August 21, 2014
A reversible lightning cable, faster LTE, an NFC chip and more are the latest rumors surrounding the iPhone...
Play video
 

Video discussion

Conversation powered by Livefyre