FTC Reaches $32.5 Million Settlement Agreement with Apple, Inc. Over Deceptive Billing Practices in Mobile Apps for Children
The Federal Trade Commission announced its sizeable settlement agreement with Apple, Inc. on Wednesday, over allegations that the company had violated Section 5 of the Federal Trade Commission Act by billing consumers millions of dollars for in-app purchases made by children on Apple devices without parental consent.
Apple has agreed to refund $32.5 million to consumers for accidental in-app purchases to settle a federal case with the Federal Trade Commission.
Today, the Federal Trade Commission (“FTC” or “Commission”) announced a settlement with technology giant Apple Inc., which will require the company to pay at least $32.5 million in refunds to consumers that the Commission alleges were billed for unauthorized in-app charges incurred by children playing popular mobile games.
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A federal appeals court struck down key parts of the Federal Communications Commission’s Open Internet Order in a Jan. 14 decision, ruling that the FCC’s “net neutrality” rules improperly regulate broadband providers like “common carriers” — such as providers of traditional telephone service — even though the FCC has classified broadband providers as not subject to common-carrier obligations.
FTC Chairwoman Edith Ramirez just announced (press conference) that Apple, Inc. (“Apple”) has agreed to provide consumers full refunds of at least $32.5 Million Dollars to settle the Commission’s complaint alleging that Apple billed consumers millions of dollars in charges incurred by children in purchasing items that costs money within mobile apps for kids (“children’s in-app charges”), without parental consent.
Tuesday’s decision by the D.C. Circuit Court of Appeals, striking down the FCC’s so-called “net neutrality” regulations, is a welcome development. As noted by many, these regulations amount to a solution in search of a problem, with the only lasting and real-world effects being the creation of the precedent of governmental oversight of the previously unregulated Internet.
6. “It is malpractice to not seek a 502(d) order from the court before you seek documents.” U.S. Magistrate Judge Andrew Peck began last year at Legal Tech providing his thoughts on the importance of orders entered pursuant to Federal Rule of Evidence 502(d).