An 11-year-old in Grand Rapids, Michigan taps a few buttons in a free game. A week later, his mom sees $140 in charges on her card. The game cost nothing to download, but the skins, passes, and coins inside it cost real money. No federal law sets a special rule just for kids' game purchases. What exists is the Federal Trade Commission (FTC, the federal agency that protects consumers), and a record of cases it has won.
What the FTC has already won
The FTC reached settlements with Apple and Google over in-app charges run up by children. Both companies had to fully refund those charges, and the refunds totaled over $50 million.
Amazon fought the case. In FTC v. Amazon.com, a federal judge in 2016 found Amazon liable for billing parents for in-app charges their children made without permission. The judge said Amazon's warnings that 'free' apps could lead to charges were not enough to tell customers what would happen.
The Fortnite case and dark patterns
In December 2022, Epic Games, the maker of Fortnite, agreed to pay $245 million in refunds. The FTC said Epic used dark patterns, which are screen designs that trick people into doing something they did not mean to do. Players could be charged by pressing a button to wake the game from sleep mode, or while trying only to preview an item.
The FTC also said that until 2018, children could buy V-Bucks, the game's currency, just by pressing buttons, with no action from a parent or card holder. And Epic locked the accounts of people who disputed charges with their credit card company.
The order now bars Epic from charging without affirmative consent (a clear yes from the person paying) and from locking accounts over disputed charges.
If a game charge surprises your family
Tell the adult whose card or account was charged, even if you feel embarrassed. It is easier to fix fast. Then that adult should ask for a refund from whoever billed the card: the app store (Apple, Google, or Amazon) or the game company. Keep a note of the date, the amount, and who made the purchase.
If the company says no, the card holder can dispute the charge with the bank or card company. The FTC's case against Epic shows that punishing someone for a dispute is a problem the agency is willing to act on.
Loot boxes are paid rewards where you do not know what you will get until after you pay. We could not find a federal law written only for them. The FTC's general rules against unfair and deceptive billing still apply. A family can file a consumer complaint online at ftc.gov or by calling 1-877-FTC-HELP (382-4357).
To prevent the next surprise, turn on the setting that asks for a password before every purchase.
Remember this
- Apple and Google refunded over $50 million in kids' in-app charges after FTC settlements.
- In FTC v. Amazon.com (2016), a federal judge found Amazon liable for billing parents for kids' unauthorized in-app charges.
- Epic Games agreed to $245 million in refunds and can no longer lock accounts over disputed charges.
- Ask the app store or game company for a refund first, then dispute with the card company or complain to the FTC.
Sources
This article provides general educational information, not individualized legal advice. KidsKnowRights is not a law firm, and reading this article does not create an attorney-client relationship. Laws vary by state, age, and circumstances, and they change over time. For advice about a real situation, talk with a licensed attorney or a legal aid organization.