$33M Apple Pact Ushers In Broad New FTC Disclosure Standard

Law360, New York (January 15, 2014, 8:48 PM EST) -- The Federal Trade Commission on Tuesday signed a $32.5 million settlement with Apple Inc. to resolve claims that the company unfairly billed parents for in-app purchases their kids had made without their permission, an authority-stretching move that will force many companies to rethink their disclosure practices.

In its administrative complaint, the regulator accused Apple of violating the unfairness prong of Section 5 of the FTC Act by billing parents for their children's activities in apps without obtaining their express informed consent. The purchases were made possible by an App Store feature that allows a user to make unlimited in-app purchases for 15...

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