United States - Google to Refund Consumers at Least $19 Million to Settle FTC Complaint It Unlawfully Billed Parents for Children's Unauthorized In-App Charges

On September 4, the FTC announced that Google Inc. has agreed to refund millions of dollars in unauthorized purchases by children using mobile apps from its Google Play app store. According to the FTC’'s complaint, thousands of consumers complained, many reporting hundreds of dollars of unauthorized charges. The settlement requires Google to provide full refunds of at least $19 million. Google also will modify its billing practices.

According to the FTC’s complaint, Google Play in-app charges range from 99 cents to $200.In many apps used by children, users accumulate virtual items.The complaint notes that the lines between virtual money purchases and real money purchases can be blurred.  After initially offering in-app purchases with no account holder authorization, the complaint states that in mid-to late 2012, Google began presenting a pop-up box asking for the account holder’s password.But the pop-up did not inform consumers of the nature of the charge, or that entering the password opened up a 30-minute window in which children could incur unlimited charges.

This is the Commission’s third case concerning unauthorized in-app charges by children.In January, Apple Inc. agreed to a settlement requiring it to provide full refunds of at least $32.5 million and change its billing practices. In July, the Commission filed a complaint in federal court against Amazon.com, Inc., similarly seeking full refunds for consumers and an order requiring informed consent for in-app charges.