Google to refund $19 million in unauthorized purchases

Google to refund $19 million in unauthorized purchases

The tech giant is the latest company targeted by the FTC for charging consumers for unauthorized purchases made by children.

Google has become the third digital company to be cited for failing to get parental consent for charges racked up by children playing games on mobile devices. The company is accused of wrongly billing consumers for these unauthorized purchases made primarily on mobile applications. An agreement has been reached for a refund of at least $19 million in a settlement today with the Federal Trade Commission.

Google has received thousands of complaints with the vast majority of them a result of purchases by children. Customer support employees referred to the issue as “friendly fraud” and “family fraud,” according to the FTC complaint. Many mobile applications available from Google Play that are used by children include virtual items available for purchase such as food for fish. The pricing of apps and in-app purchases can range from 99 cents to $200, allowing for add-on options and game upgrades.

“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,” FTC Chairwoman Edith Ramirez said.

Google is the latest company to have problems with unauthorized purchases. Apple Inc. agreed to pay $32.5 million to refund consumers in January of this year. Amazon Inc. was sued by the agency in July. The shipping giant is accused of failing to get permission from parents for charges and purchases incurred by children. Amazon is fighting the lawsuit.

Google said it was pleased to resolve the complaint. “We’ve already made these product changes to ensure people have the best Google Play experience possible,” Google spokeswoman Niki Christoff said in a statement. Google has agreed to provide full refunds to affected consumers. The minimum payment to fully settle the FTC’s complaint will total at least $19 million. It also agreed to modify its billing practices in the Google Play app store to get express consent from all users.

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