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Apple to refund $41.3m for kids' app purchases

Published on Jan 16, 2014 2:13 AM
 
Apple CEO Tim Cook speaks about the number of Apps downloaded during an Apple event in San Francisco, California in this file photo from March 7, 2012. Apple has agreed to refund at least US$32.5 million (S$41.3 million) to US customers for children's purchases from its online App Store without parental consent, US regulators said Wednesday. -- FILE PHOTO: REUTERS

WASHINGTON (AFP) - Apple has agreed to refund at least US$32.5 million (S$41.3 million) to US customers for children's purchases from its online App Store without parental consent, US regulators said Wednesday.

The Federal Trade Commission said Apple also agreed to modify its practice - which until now had allowed children to make purchases on an iPhone or iPad 15 minutes after a password was entered.

FTC chairwoman Edith Ramirez said Apple failed to inform parents of the 15-minute window that could allow children to make purchases ranging from one dollar to US$100 for each app.

Ms Ramirez told reporters that because of the loophole, "children ran up millions of dollars in charges without their parents' knowledge and consent," a violation of federal rules.

 
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