Apple’s remaining FTC in-app purchase penalty goes to… the FTC

Chris Burns - Jan 16, 2014, 11:38am CST
Apple’s remaining FTC in-app purchase penalty goes to… the FTC

This week Apple and the FTC announced – in their own way – that they’d settled on a case which had the FTC reprimanding the computer company for their less-than-perfect dealings with in-app purchases and the young customers that took advantage of their abilities in iOS. Tim Cook’s side of the story suggested that Apple still wasn’t entirely happy with the situation, that the it “smacked of double jeopardy” because Apple was already in the process of paying their dues with a federal court. Here in reading the actual FTC consent agreement, we find that this isn’t entirely true.

In the agreement you’ll find the amount $32,500,000.00 appear twice, both of these appearances also reproduced here in this article. The agreement does not specify how the commission came to this amount other than saying it is “for Eligible In-App Charges.” Once they’ve suggested this amount, they go on to say that Apple will need to send it all back to consumers within 45 days of the end of the Consumer Redress Period.

“D. If Apple fails to refund $32,500,000.00 pursuant to section II.B of this order, the
balance of that amount shall be remitted to the Commission within forty-five (45) days of the end
of the Consumer Redress Period.

E. All funds paid to the Commission pursuant to section II.D of this order may be
deposited into a fund administered by the Commission or its designee to be used for equitable relief, at the Commission’s sole discretion, for informational remedies regarding In-App Charges
by children or consumer redress and any attendant expenses for the administration of any redress
fund. Any money not used for such purposes shall be deposited to the United States Treasury.
Apple shall have no right to challenge the Commission’s choice of remedies under this

We’ve added the emphasis there to make certain you’re aware of how this case is going down. There’s also an order which demands the FTC be able to attain business records from Apple for a further five years as it pertains to this case.

“IT IS FURTHER ORDERED that Respondent and its successors and assigns for five (5)
years after the date of issuance of this order, shall maintain and upon request make available to
the Federal Trade Commission business records demonstrating their compliance with the terms
and provisions of this order…”

You can read the entire document for yourself through the link earlier in this article and keep in mind – it’s ready to roll, and Apple and the FTC have already agreed to it. It’s happening, and at this point it’s not going to get appealed.

VIA: Fortune

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