The Federal Trade Commission has ordered Google to refund $19 million for in-app purchases made by kids through apps downloaded from Google Play store.
The penalty covers transactions made since 2011 in violation of the FTC's Act on the prohibition of commercial practices that charge consumers for purchases made by their children.
The FTC noted that Google didn't require a password or proper authorization for in-app purchases before mid-2012. And when it finally implemented the required notification, Google failed to include the transaction amount and to inform the user that transactions made in the next 30 minutes would be authorized automatically.
"For millions of American families, smartphones and tablets have become a part of their daily lives," said FTC chairwoman Edith Ramirez. "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 also agreed to change its billing practices to ensure it has "express, informed consent" from the account holder.
