Google Will Refund Consumers $19 Million in App Charges Settlement
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Justin Sullivan/Getty Images(NEW YORK) — Google is set to pay consumers at least $19 million in a settlement with the Federal Trade Commission (FTC) after complaints that the company unfairly billed millions of dollars in authorized charges made by children.
Parents claimed their children downloaded apps from the Google Play store without permission. Since 2011, many consumers reported hundreds of dollars in such charges.
Officials say Google presented a pop-up box asking for the account holder’s password before billing. However, it did not provide information on any charges, nor did it tell customers that entering the information would open a 30-minute window to allow children to accrue unlimited charges.
In addition to the payment, the case also forced the company to modify its billing practices, officials announced Thursday.
“For millions of American families, smartphones and tablets have become a part of their daily lives,” FTC Chairwoman Edith Ramirez said. “As more Americans embrace mobile technology, it’s vital to remind companies that time-tested consumer protections still apply, including that consumers should not be charged for purchases they did not authorize.”
Thursday’s settlement marks the Commission’s third such case involving unauthorized in-app charges by children. The FTC settled with Apple in January and filed a federal court complaint against Amazon in July.
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