Tomahawk, WI 09/05/2014 (Basicsmedia) – Google Inc. (NASDAQ:GOOG) has joined Apple Inc. (NASDAQ:AAPL) as some of the biggest tech companies that have been fined by authorities, for wrongly billing its customers especially on unauthorized purchases made by children on mobile applications. A fine of $19 million has been handed down to Google according to Bloomberg’s Alex Barinka, as a result of its actions.
The lawsuit came in the wake of many parents raising concerns that they were being charged for goods bought in their accounts without their consent. Most of the affected parents had not realized that the purchase might have been made by their kids while playing games online.
Google Inc. (NASDAQ:GOOG) has reportedly agreed to provide refunds to affected accounts as it goes forth to settle with the FTC for $19 million. Google Inc. (NASDAQ:GOOG)’s penalty could look like a slap on the wrist, considering Apple Inc. (NASDAQ:AAPL) in January was forced to pay a total of $32.5 million on similar accusations.
“[…] I think the biggest thing here for Google and Apple have come out and said; we are going to change our billing practice we are going to make sure that kids can’t buy things without parental consent. Which I think is kind of what the industry wants here,” said Mrs. Barinka.
Google Inc. (NASDAQ:GOOG) has already stated that it will create passwords that will ensure similar incidence do not occur in the future. The use of passwords will mostly help prevent purchases being made without the consent of the parents. Amazon on its part is maintaining a hard stance on the matter according to Barinka as it also faces similar charges with the FTC.
“Google Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have recognized it. Amazon.com, Inc. (NASDAQ:AMZN) came out in July; they have a similar situation with the FTC they said any lawsuit that is coming we are going to fight we already have refunded our customers, and we don’t want to do anything about it,” said Mrs. Barinka.