5-Year-Old Danny Kitchen Racks Up $2,550 iPad Bill While Playing ‘Zombies vs. Ninja’ Game. Huffington Post.

Beware of Kids’ In-App Purchases on Your Devices

How often have you handed your iPhone or iPad to your kids for games? Many parents do — until they get a shocking bill. Several families have faced huge charges from so-called “free” games that allow in-app purchases.

The game makers actually found a great loophole,” says Jake Marsh.  Marsh is an iPhone developer. “They can give their games for free and then charge for in game upgrades so you may have a game where you can play it all day every day for free but to experience the game you have to pay for a new shield.”

The Costly Surprise for Families

The Kitchens family isn’t alone. In one shocking case, six-year-old Will Smith spent £2,000 playing Tiny Monsters on his grandfather’s iPad. His grandparents only realized it when their credit card was declined.

Many parents have faced similar situations. Some are even suing Apple, claiming it entices children to make in-app purchases. If the lawsuit succeeds, parents around the world could also claim compensation.

Why Kids Can Make Purchases So Easily

Even though purchases are password-protected, Apple’s system allows a 15-minute window after entering a password. During this time, users can buy anything without re-entering it.

That means if a parent downloads a game, then hands the device to a child immediately, the child can make unlimited purchases for 15 minutes. That small window has cost families hundreds — even thousands — of dollars.

How to protect yourself against In Application Purchases (IAPs)

• Turn off IAPs on your device and require a passcode (not the device’s passcode) to turn them back on.
• On an iPhone, go to Settings, tap General, then Restrictions, and then set an unlock code. Also, scroll down to the In-App Purchases switch and slide to off.
• Put the device in “airplane” mode, or otherwise turn off internet access.
• Require the account password whenever any purchase is made (be it an IAP or a new app).
• Put your app store account on a gift card instead of linking to a credit card, so any download damage is limited to a specific amount.

Looks like Apple is going to have to pay the piper on this one.  Apple’s settlement over in-app purchasing inches closer to approval and may include 23M refunds.

Apple’s proposed settlement over in-app purchases made by unwitting children was discussed in a court hearing, with counsel for both parties hammering out how the Cupertino Company will dole out refunds. In the settlement, which could see claims from over 23 million iTunes users, Apple is offering plaintiffs $5 iTunes credits, the same amount in cash, or full refunds for claims over $30.

So stay tuned, if you were a victim to IAPs you just might be able to recover something back from Apple.  Be ready to jump through hoops to get your reimbursement.