Blogs

$19 Million Settlement for Droid App Charges between Google and FTC

09.09.14

TexasBarToday_TopTen_Badge_Small (1)

Unsuspecting children downloaded apps from the Google Play store with “unlimited in-app charges without Google requiring entry of a password or other account holder involvement to obtain the account holder’s consent before the charges were incurred” according to FTC (Federal Trade Commission) Chair Edith Ramirez. On September 4, 2014 the settlement between Google and the FTC was announced that:

Google Inc. has agreed to settle a Federal Trade Commission complaint alleging that it unfairly billed consumers for millions of dollars in unauthorized charges incurred by children using mobile apps downloaded from the Google Play app store for use on Android mobile devices.

Under the terms of the settlement, Google will provide full refunds – with a minimum payment of $19 million – to consumers who were charged for kids’ purchases without authorization of the account holder.

Google has also agreed to modify its billing practices to ensure that it obtains express, informed consent from consumers before charging them for items sold in mobile apps.

Google is not the only app store violator, on January 15, 2014 Apple agreed to refund $32.5 million for similar charges “incurred by children in kids’ mobile apps without their parents’ consent” and on July 10,2014 the FTC filed suit against Amazon for similar claims for sales to children at the Amazon App Store for the Kindle and Droid.

The publications contained in this site do not constitute legal advice. Legal advice can only be given with knowledge of the client's specific facts. By putting these publications on our website we do not intend to create a lawyer-client relationship with the user. Materials may not reflect the most current legal developments, verdicts or settlements. This information should in no way be taken as an indication of future results.

Search Tips:

You may use the wildcard symbol (*) as a root expander.  A search for "anti*" will find not only "anti", but also "anti-trust", "antique", etc.

Entering two terms together in a search field will behave as though an "OR" is being used.  For example, entering "Antique Motorcars" as a Client Name search will find results with either word in the Client Name.

Operators

AND and OR may be used in a search.  Note: they must be capitalized, e.g., "Project AND Finance." 

The + and - sign operators may be used.  The + sign indicates that the term immediately following is required, while the - sign indicates to omit results that contain that term. E.g., "+real -estate" says results must have "real" but not "estate".

To perform an exact phrase search, surround your search phrase with quotation marks.  For example, "Project Finance".

Searches are not case sensitive.

back to top