Last year, Apple had requested to dismiss a lawsuit that was brought against the company by a group of parents after their kids spent large amounts of money on in-app purchases. Now California judge has denied that request. This is certainly a bad news for Apple.
The lawsuit, originally filed in April 2011, alleged that Apple’s implementation of in-app purchasing made it too easy for the children to rack up massive fees on their parents’ money without realizing what they were doing. Federal Judge Edward J. Davila of the Northern District of California allowed four of the five claims laid out in the class action lawsuit to move forward. The only claim Judge Davila axed involved the breach of good faith and fair dealing.
Charges racked up by “minors” on their parents credit cards tied to their iTunes accounts ranged from $99 to more than $300. The argument started when parents purchased the app, hand it to the unsupervised child, and when iOS would ask for reauthorization of purchases. Apple changed the password window with iOS 4.3, but the charges occurred before the iOS adjustment.
Apple argument for the dismissal request revolved around the company’s terms and conditions which the customer agreed to upon shopping in the iTunes App Store. However, very few people read such terms.