Google To Refund $19 Mln As It Settles FTC Complaint Over App Purchases By Kids

(RTTNews) - Google Inc. (GOOG, GOOGL) has agreed to settle a Federal Trade Commission complaint alleging that the internet giant unfairly billed consumers for millions of dollars in unauthorized charges incurred by children using mobile apps downloaded from the Google Play app store for use on Android mobile devices.

Google will provide full refunds, with a minimum payment of $19 million, to consumers who were charged for kids' purchases without authorization of the account holder.

Google has also agreed to modify its billing practices to make sure that it obtains express, informed consent from consumers before charging them for items sold in mobile apps.

The Commission's complaint alleges that since 2011, Google violated the FTC Act's prohibition on "unfair" commercial practices by billing consumers for charges by children made within kids' apps downloaded from the Google Play store.

Many consumers reported hundreds of dollars of such unauthorized charges, the complaint said.

FTC Chairwoman Edith Ramirez said, "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."

GOOG closed up 0.7 percent at $581.98 on Thursday, and GOOGL settled higher by 0.6 percent at $593.14.