If you are one of the parents whose kids have racked up credit card bills by making unauthorized in-app purchases, it is your lucky day. Google has agreed to address the controversial in-app billing issue by paying out $19 million toward refunds. The announcement comes after the internet search titan was accused of wrongly billing consumers for unauthorized purchases made by kids on mobile apps.
According to the Federal Trade Commission, Google added millions of dollars to parents' bills without their consent or knowledge. As it violates the commission's fair business practice guidelines, the FTC demanded a refund for all unauthorized payments. The wrongful billing was mainly linked to games that appear as "freemium," which are free to download but require users to pay real money to unlock certain features within the game. The web giant was widely criticized for such practices, which originated in 2011, according to a report by CS Monitor.
"For millions of American families, smartphones and tablets have become a part of their daily lives," FTC Chairwoman Edith Ramirez said in a press release Thursday. "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."
Google isn't the only company caught in the crosshairs of FTC over unauthorized in-app purchases. In January, Apple agreed to pay $32.5 million toward customer refunds for wrongful billing and Amazon is fighting a lawsuit after it was sued by the commission for adding charges to customers' bills without their consent.
According to the FTC report, Google is also required to change its billing practices and seek permission from consumers before billing them for in-app purchases. Google said it was glad to settle the ongoing dispute and has implemented new changes to Play Store.
"We've already made product changes to ensure people have the best Google Play experience possible," Google said in a statement, according to the Huffington Post. "We're glad to put this matter behind us so we can focus on creating more ways for people to enjoy all the entertainment they love."
