Apple will refund millions of dollars to consumers after allowing kids to make in-app purchases without the consent of their parents. The company will pay at least 32.5 million dollars, after reaching a settlement with the Federal Trade Commission Thursday.
The FTC said Apple failed to tell parents once they enter their apple passwords for children, there's a 15 minute window in which kids can make more purchases. Apple will have to change its billing practices as part of the settlement by notifying parents of the 15-minute window. It has until March to make the changes.
Apple has already settled a class action lawsuit with parents who said the company's policy let their children rack up charges without their permission.
People who use the Starbucks mobile app should be on alert. That's according to a research report that says the app leaves customers' passwords open to attack. The app allows Starbucks customers to purchase drinks and food directly from their smartphones. It saves usernames, passwords and other personal information in plain text. That means a hacker could pick up a left-behind phone, plug it into a laptop and easily recover a Starbucks customer's password without even knowing the smartphone’s pin code.
Starbucks officials acknowledge the vulnerability, but he did say no customers have claimed to have been hacked as a result.
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