Google once again has made the news, although for negative reasons. Apparently, Google Inc. (NASDAQ:GOOG) has been charging parents for the in-app purchases made by their children. The complaint was formally registered by the Federal Trade Commission which accused Google of not raising awareness among the public about the in-app expenses charged by their phones.
Most of the purchases are made by young children who are usually unaware of the in-app charges; it is the parents who have to pay for these purchases.
The FTC condemned this act by Google and said that the tech giant went beyond the law of commercial practices. The FTC chairwomen said that Google will have to educate their customers on how to get a refund, which apparently amounts to $18 million.
The FTC further stated that smartphones have become a house hold gadget which is used by both parents and children and for that reason companies should not force anyone to pay for items that were unintentionally purchased.
Google in a statement said that it is taking strict action to raise awareness among its users about purchasing an app. They’ve agreed for a refund and said that the matter is behind them now.
Apple faced a similar situation back in January this year when a complaint was filed for the in-app charges that the parents were forced to pay.
Apple settled the matter with a refund of $31.5 m. Amazon was also sued by the FTC for charging children about the in-app purchases; Amazon however has not paid a refund and it is believed the company might fight the charges.
Google Inc. Apps are mostly free but a few have to be purchased. But some of these ‘free’ apps have in-app charges which range from $0.99 to $2 and the parents are charged every time a purchase is made by their children.
The European Union has also stepped in to bring reforms in in-app spending. They claim that EU is working with big technology companies to alter the way apps are being marketed. The reforms will include elimination of the word ‘free’ in Google store; it also requires the company to add more information regarding customers payment arrangements before an app is purchased.
Many other big names in the tech world are charging their users without their knowledge; it’s just a matter of time that each one of them will be asked to make a refund for all these in-app purchases.
Google seems to be facing a bad luck streak because it is already in a battle for an antitrust deal with European Union which is heavily criticized by the media, publishers, analysts and even politicians.
But there’s one thing Google has done that really shows their professionalism: they did not resist or fight over the refund matter and instantly agreed to pay whatever FTC settled on, which is something Amazon is refusing to do. Google Inc. (NASDAQ:GOOG) stated in a statement that it is more concerned about providing its users with better quality and entertainment because that has always been and will be the priority. They further said Google would never stoop down to cheat its own customers.
