WASHINGTON — Federal officials on Thursday announced Google has agreed to settle charges and repay $19 million to consumers whose children were allegedly deceived into making mobile purchases through the Android app store.
Since 2011, according to the Federal Trade Commission, Google made it too easy for children using Android phones to buy items ranging from 99 cents to $200 in kids-oriented games without a parent’s permission.
The settlement is the latest in the FTC’s three-year investigation into so-called “in-app purchases” on devices running software by Apple, Amazon and Google. The enforcement agency has said the purchases are deceptive and particularly harmful for children. Apple agreed to a $32.5 million settlement last January. Amazon in July said it would fight similar charges brought by the FTC.
The FTC has alleged that the major technology companies did not properly disclose to parents and children the ability to purchase items within games and other child-oriented apps. Parents have filed civil lawsuits against the companies, too, criticizing the firms and apps developers for what they describe as predatory practices targeting children to buy $99 gold coins and other items within games. Children, they say, were at times able to buy those items — later billed to parents — without any safeguards such as apps store passwords. Apple has changed its practices, and Amazon has offered parental safety tools to prevent unwanted purchases.
“For millions of American families, smartphones and tablets have become a part of their daily lives,” FTC Chairwoman Edith Ramirez said in a release. “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.”
In its release, the FTC said Google employees internally referred to the problem as “family fraud” and “friendly fraud.” Apple and Google have changed their practices since the FTC’s investigations and refund accounts.
Google has agreed to fully refund unauthorized in-app charges incurred by children and get “express, informed consent” from consumers for in-app purchases. The company said all Android customers who have made in-app charges will hear from Google about how they can get refunds.