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Angry parents file class action suit against Apple over in-app payments

By Lee Kaelin

On April 17, 2012, 11:30 AM

Apple's hectic legal department is set to wake up to yet another lawsuit this week, this time a class action lawsuit filed by angry parents who claim the American iPhone and iPad retailer is unfairly profiting from in-app purchases of digital content of free games aimed specifically at children.

The group says it's far too easy for kids using the devices to tote up huge bills without authorization from their parents. Apple's purchasing system allows users to save credit card information and just use a password for future transactions.

Federal Judge Edward Davila agreed, granting a future hearing for the class action suit to be heard on the grounds that enough specific examples had been provided for the lawsuit to proceed and the parents had a reasonable claim given the damages suffered before the loophole was closed.

Their court filing accuses the Cupertino-based American firm of "inducing" children to make in-game purchases, including digital items such as "smurfberries" for the Smurfs Village game, which Apple's purchasing system allows children to do without the permission of their parents.

"These games are highly addictive, designed deliberately to be so, and tend to compel children playing them to purchase large quantities of game currency, amounting to as much as $100 per purchase or more," the suit read, according to the Telegraph.

Apple called for the class action suit to be dismissed on the grounds that recent updates to their iOS operating system changed the purchasing procedure, which optionally now includes the requirement to enter an additional password to purchase apps and other items from the vendor's store. Another new option includes the ability to turn off the feature entirely, preventing children from unwittingly running up the bill.

However, the group's leader, attorney Garen Meguerian insists that children are still encouraged to purchase items due to the game's addictive nature and most parents were unaware of the financial consequences until viewing the bills, by which time it was too late.

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User Comments: 14

Got something to say? Post a comment
  1. I'm not an apple fan and if it wasn't because the iPod i wouldn't give a dam about them, but in this case just one thing comes to my mind:

    "Why on earth would you attach your credit/debit card to a device that can be easily misplaced?"

    Don't do complicated whats already easy!, the best security for your credit/debit card is not saving it on insecure devices >.>

  2. That is how every online retailer works world wide!

    Any website will save credit card info and only require a password.

    Stupid parents. When did it become acceptable to blame everyone but the guilty?

  3. Here's what I don't get:

    Just because Apple has NOW implemented the actions to prevent such occurrences doesn't mean that it DID prevent the problem in the past. The lawsuit should not be dismissed because of a new change. The parents/bill-payers should still have the right to monies previously spent due to a failure in the system.

    For the other side:

    The lawsuit should not continue because the games are addictive (I'm glad they are... it's called fun!) or that the system still allows parents to make payments without realizing the consequences immediately. Ignorance is not an excuse, also, how bright is a person if they say "ok" to spending $10 in a game without realizing it will show up on a bill? That's like going to a casino and betting $500 on credit, losing it, then suing the casino because you "were unaware of the financial consequences until viewing the bills."

    Poor (and borderline stupid) arguments presented from both sides thus far, at least based upon this article.

  4. Why buy your CHILD/CHILDREN (by use of the word implying ignorance/immaturity/lack of worldly wisdom by definition) a phone that has access to billing? please explain me that one and we'll talk.

  5. PS that last one hurt me. The only thing that could get me to defend apple is pitting apple vs stupidity. congrats techspot. youre mean now!

  6. I agree that it is the parents fault. I dont understand how easily a parent hands their child an expensive electronic device in the first place. Sticky butter fingers all over it, dropping it, and costing you a fortune with it.

    I bought my girlfriend an ipod touch and said dont let your kids use it. But she did. Some game with animals, and the kid bought an electronic generated giraffe and £10 virtual ice cream. I mean that is some pricey ice cream. I can get two tubs or more of ben and jerrys for that.

    Needless to say I complained. They told me there were functions to prevent this and to look into it, but were still nice enough to refund me the money. It is down to stupidity. But commercialism by todays standards is all about parting fools and their money.

  7. I just got this great South Park visual of parents launching themselves from giant slingshots against the Apple HQ

  8. "which optionally now includes the requirement to enter an additional password to purchase apps and other items from the vendor's store."..."ability to turn off the feature entirely,"

    Very good idea...

    even if it's a little late.

    I agree with the lawsuit given the reasons provided. Children's games should NOT be asking children for more money.

  9. Sorry...I don't really blame apple for this. If a parent is STUPID enough to give a CHILD a device that has stored passwords, credit card information, well...that's your own D*MN fault! Why is it ANYTHING that these wallflowers do isn't wrong, but someone else is to blame? Just another ambulance chasing class action lawyer trying to get rich.

  10. @p51d007:

    Ummm...almost every kids game system has credit card info nowadays. It's the way publishers are selling games now.

    Where have you been?

    Maybe you don't have kids and therefore don't have to deal with issues like this.

  11. totally agree with the parents on this one (and not just because i hate apple). one, you have to enter CC info and set a password to even get the smallest access to apples app store. two, these games are designed to get kids to spend their parents money. the kids and parents are victims in this case.

  12. How ridiculous has the world become...I mean, really!!! Blaming a company, who's in the business to make money (DUH!) for not controlling your children and their activities? Absurd. I hope Apple wins this one big time!

  13. Sorry...I don't really blame apple for this. If a parent is STUPID enough to give a CHILD a device that has stored passwords, credit card information, well...that's your own D*MN fault! Why is it ANYTHING that these wallflowers do isn't wrong, but someone else is to blame? Just another ambulance chasing class action lawyer trying to get rich.

    I am so with you on this one!!!

  14. What ever happened to individual responsibility? Parents who cannot control their kids or say no to their kids now look for ways to blame someone else for their bad parenting. It was the same with the McDonald's Happy Meal. Parents who could not parent tried to sue McDonald's to keep the toys out of the Happy Meal. That was stupid and a judge threw it out. The judge allowing this lawsuit against Apple to go forward really needs to have his/her head examined.

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