A Pennsylvania man has filed suit against Apple for what he considers to be the "unlawful exploitation" of children (and their parents' wallets) via Cupertino's in-app purchasing policies.
Despite the fact that Apple now requires users to enter passwords before making in-app purchases, Garen Meguerian says that minors can still easily make purchases on their parents' accounts.
"Minors 13 and older are permitted to open their own Apple accounts, and minors younger than 13 may purchase Game Currency by using their parents' general Apple password. No special Apple password is required to purchase Game Currency," according to the suit, which was filed in a Northern California district court.
Since the passwords for in-app purchases are the same as the main Apple passwords, kids who are "aware of such password may purchase Game Currency without authorization from their parents for that purchase," Meguerian argued.
Meguerian's 9-year-old daughter racked up about $200 in in-app purchases while playing games like "Zombie Café," "Treasure Story," and "City Story." Meguerian says he was "completely unaware" that these games included in-game currency and was shocked to find the charges on his account. According to receipts submitted in the lawsuit, his daughter made her purchases in February, before Apple's in-app purchase requirement went into effect in March.
Apple's in-app purchase policies got attention when lawmakers asked the Federal Trade Commission to examine in-app purchases and determine whether or not consumers were being unfairly charged. They pointed to a Washington Post article that discussed an 8-year-old who had racked up $1,400 in in-app charges via Capcom's "Smurfs' Village" game. Capcom later agreed to post a warning about in-app purchases.
The FTC said it was examining the issue, but Apple's iOS 4.3 fixed the problem for App Store apps; Google added in-app billing to Android apps in late March.
Meguerian is suing Apple for breach of contract and unjust enrichment, among other things. He wants damages as well as attorneys' fees and costs.