Apple to settle class action lawsuit on in-app purchases by minors
A court in California has to approve settlement of class-action lawsuit
IDG News Service - Apple has reached a settlement in a class-action lawsuit that claimed that its app purchase policy did not prevent minor children from running huge expenses for in-app purchases.
Under the settlement proposed to a court in California, Apple has agreed to pay in cash and credits through its iTunes store to a class of U.S. residents who claimed to have paid for "Game Currency" in game apps downloaded from the App Store by minors without their knowledge or permission.
Plaintiff Garen Meguerian, who filed the initial class action complaint in a court in California in April, 2011, alleged that he discovered a series of in-app purchases charged by his then eight-year-old daughter in third-party apps between January and March 2011 without his knowledge or permission, according to court records.
Apple requires its users to authenticate their accounts by entering a password before purchasing or downloading an app or buying game currency, according to the 2011 complaint. Until recently, once the password was entered, the user even if a minor could purchase game currency for the next 15 minutes without entering the password again, it added.
At the time, the plaintiff was unaware that the children's apps offered game currency. Four other plaintiffs made similar allegations which were consolidated in a single case before the U.S. District Court for the Northern District of California, San Jose division.
Class action members could stand to benefit from $5 in iTunes credits to cash payments of $30 or more, depending on their specific circumstances. Apple did not specify in the settlement how much it expected to pay out. The precise size of the proposed settlement class is currently unknown, although the notice will be distributed to over 23 million iTunes account holders who made a game currency purchase in one or more qualified apps, according to the court document.
The court has to still approve the settlement.
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Logicalis eBook: SAP HANA: The Need for Speed Without timely business insights, organizations today can suffer logistical, manufacturing, and even financial disaster in a matter of minutes
- Neustar 2014 DDoS Attacks and Impact Report For the third consecutive year, Neustar surveyed hundreds of companies on distributed denial of service (DDoS) attacks. The survey reveals evidence that the...
- Acxiom Case Study This case study, which focuses on Acxiom, explores how the company was able to secure employee data, reduce migration costs and boost productivity...
- Windows® XP Migration: Protect and Secure Critical Data With the end of the Microsoft Windows XP operating system's lifecycle on April 8, 2014, businesses are faced with the decision to migrate...
- Top 4 Digital Signage Fails Join RMG Networks for a look at four of the most common reasons digital signage fails in corporate businesses. Learn about strategies to...
- Building Tomorrow's Infrastructure Listen to this podcast to discover how Crider Foods worked with PC Connection to update their IT infrastructure, while maintaining compliance and control. All Legal White Papers | Webcasts