Google settles for $19Million with angry parents

Unfair, unauthorized in-app purchases on the Google Inc. (NASDAQ:GOOG) Apps US store had parents filing a formal complaint against Google Inc. (NASDAQ:GOOG), which the internet giant has agreed to settle instead of fighting the charges. I guess settling for around 11.6 Million pounds seems feasible instead of spending the time money and effort to fight these charges. This gives us a hint at the super charged, productive atmosphere within Google Inc. (NASDAQ:GOOG) where they are busy churning out new ideas and products which would rake in much more than the $19 Million settlement.

Coming from the FTC (US Federal trade Commission) which didn’t even make Google Inc. (NASDAQ:GOOG) bat an eyelash before settling, demanded that Google Inc. (NASDAQ:GOOG) should warn people more comprehensively about the money they were spending on their purchases. The majority of which were made by childrenunder the age of 18 pumped up by the excitement to get more of their favorite smartphone games. This spontaneous in-app purchase hardly qualifies as a rational purchase, which to note is done without the consent of the person actually paying for it i.e the unsuspecting parents.

According to the FTC, Google Inc. (NASDAQ:GOOG) has clearly broken its ban on unfair transaction practices as it was taking payments from the parents whereas the actual purchasers were their children. Mobile Technology is being embraced by Americans in hoards and the companies need to be made aware that this new commerce sphere is also under protection for consumers by law stressed Edith Ramirez who is the current FTC chairwoman.

FTC acknowledged that Google Inc. (NASDAQ:GOOG) had gone a step further where previously NOverification was required for the in-app purchases, however it still needs to go miles where informing people how much they would be paying is concerned. The settlement demands that before any in-app purchase takes place, people need to give explicit and informed consent before paying.

Google Inc. (NASDAQ:GOOG) announced it has already altered and improved the way people are informed where in-app purchases are concerned. They added that they were glad to put this unfortunate incident behind them so they could concentrate on presenting more ways to their customers for enjoying their favorite online entertainment. According to the FTC, some consumers (children) incurred bills which amounted to hundreds of dollars.

Point to note here before we go labeling Google Inc. (NASDAQ:GOOG) as a money crazed cheater, this is a pretty common scenario where online companies are concerned. Apple Inc. (NASDAQ:AAPL) was in a similar situation this January when it settled similar complaints regarding in-app purchases made through iTunes. It repaid much more than Google Inc. (NASDAQ:GOOG) has been asked to; Apple Inc. (NASDAQ:AAPL)’S figure is $31.5 Million. So in this unchartered cyber space where rules have to be set as nobody knows how to proceed in the undefined territory, mistakes like these will happen.

Amazon (NASDAQ:AMZN), unlike Google Inc. (NASDAQ:GOOG), believes the purchases made by children through its Android store are legitimate. Sued by the FTC, Amazon (NASDAQ:AMZN) has refused to settle and will fight these charges. Interesting development here, as Amazon (NASDAQ:AMZN) has every right to try and shape this internet commerce to what it believes is right.