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UNITED STATES OF AMERICA 

FEDERAL TRADE COMMISSION 

 

In the Matter of 

APPLE INC., 

a California corporation.

DOCKET NO. ____________ 

AGREEMENT CONTAINING CONSENT ORDER

 The Federal Trade Commission has conducted an investigation of certain acts and 

practices of Apple Inc., a California corporation (“Apple” or “proposed respondent”). Proposed 

respondent is willing to enter into an agreement containing a consent order resolving the 

allegations contained in the attached draft complaint. Therefore, 

 IT IS HEREBY AGREED by and between proposed respondent, by its duly authorized 

officers, and counsel for the Federal Trade Commission, that: 

1. Proposed respondent is a California corporation with its principal office or place of 

business in Cupertino, California. 

2. Proposed respondent admits all the jurisdictional facts set forth in the draft complaint. 

3. Proposed respondent waives: 

a. Any further procedural steps; 

b. The requirement that the Commission’s decision contain a statement of findings 

of fact and conclusions of law; and 

c. All rights to seek judicial review or otherwise to challenge or contest the validity 

of the order entered pursuant to this agreement. 

4. This agreement shall not become a part of the public record of the proceeding unless and 

until it is accepted by the Commission. If this agreement is accepted by the Commission, 

it, together with the draft complaint, will be placed on the public record for a period of 

thirty (30) days and information about it publicly released. The Commission thereafter 

may either withdraw its acceptance of this agreement and so notify proposed respondent, 

in which event it will take such action as it may consider appropriate, or issue and serve 

its complaint (in such form as the circumstances may require) and decision in disposition 

of the proceeding. 
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5. Proposed respondent neither admits nor denies any of the allegations in the draft 

complaint, except as specifically stated in this order. Only for purposes of this action, 

proposed respondent admits the facts necessary to establish jurisdiction. 

 

6. This agreement contemplates that, if it is accepted by the Commission, and if such 

acceptance is not subsequently withdrawn by the Commission pursuant to the provisions 

of Section 2.34 of the Commission’s Rules, the Commission may, without further notice 

to proposed respondent, (1) issue its complaint corresponding in form and substance with 

the attached draft complaint and its decision containing the following order in disposition 

of the proceeding, and (2) make information about it public. When so entered, the order 

shall have the same force and effect as, and may be altered, modified, or set aside in the 

same manner as, and within the same time provided by statute for, other orders. The 

order shall become final upon service. Delivery of the complaint and the decision and 

order to proposed respondent’s address as stated in this agreement by any means 

specified in Section 4.4(a) of the Commission’s Rules shall constitute service. Proposed 

respondent waives any right it may have to any other manner of service. The complaint 

may be used in construing the terms of the order. No agreement, understanding, 

representation, or interpretation not contained in the order or in the agreement may be 

used to vary or contradict the terms of this order. 

7. Proposed respondent has read the draft complaint and order. It understands that it may be 

liable for civil penalties in the amount provided by law and other appropriate relief for 

each violation of the order after it becomes final. 

ORDER

DEFINITIONS

 For the purposes of this order, the following definitions shall apply: 

 1. “Account Holder” means an individual or entity, with a billing address in the 

United States, that controls an account to which Apple may bill In-App Charges. 

 

 2. “Application” or “App” means any software application that can be installed on a 

mobile device. 

 

 3. “Clear and Conspicuous” or “Clearly and Conspicuously” means: 

 

 A. In textual communications, the disclosure must be in a noticeable type, 

size, and location, using language and syntax comprehensible to an ordinary 

consumer; 

 

 B. In communications disseminated orally or through audible means, the 

disclosure must be delivered in a volume, cadence, language, and syntax 

sufficient for an ordinary consumer to hear and comprehend them; 
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 C. In communications disseminated through video means: (1) written 

disclosures must be in a form consistent with definition 3.A and appear on the 

screen for a duration sufficient for an ordinary consumer to read and comprehend 

them, and be in the same language as the predominant language that is used in the 

communication; and (2) audio disclosures must be consistent with definition 3.B; 

and 

 

 D. The disclosure cannot be combined with other text or information that is 

unrelated or immaterial to the subject matter of the disclosure. No other 

representation(s) may be contrary to, inconsistent with, or in mitigation of, the 

disclosure. 

 4. “Defendant” means Apple Inc. and its successors and assigns. 

 5. “Express, Informed Consent” means, upon being presented with options to 

provide or withhold consent, an affirmative act communicating informed authorization of 

In-App Charge(s), made proximate to an In-App Activity for which there is an In-App 

Charge and to Apple’s Clear and Conspicuous disclosure of all material information 

related to the billing, including: 

 

 A. If consent is sought for a specific In-App Charge: (1) the In-App Activity 

associated with the charge (as provided to Apple by the App’s developer); (2) the 

specific amount of the charge; and (3) the account that will be billed for the 

charge; or 

 

 B. If consent is sought for potential future In-App Charges: (1) the scope of 

the charges for which consent is sought, including the duration and Apps to which 

consent applies; (2) the account that will be billed for the charge; and (3) 

method(s) through which the Account Holder can revoke or otherwise modify the 

scope of consent on the device, including an immediate means to access the 

method(s). 

Provided that the solicitation of the “affirmative act” and the disclosure of the 

information in definitions 5.A and 5.B above must be reasonably calculated to ensure that 

the person providing Express, Informed Consent is the Account Holder. 

 

Provided also that if Apple obtains Express, Informed Consent to potential future 

In-App Charges as set forth in definition 5.B above, it must do so a minimum of once per 

mobile device. 

 

 6. “In-App Activity” or “In-App Activities” means any user conduct within an 

App including the acquisition of real or virtual currency, goods, or services, or other 

Apps. 

 7. “In-App Charge” means a charge associated with In-App Activity billed by 

Apple. 
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 8. “Consumer Redress Period” means the twelve (12) month period of time 

between the entry and the first anniversary of this order.

I. 

 

IT IS FURTHER ORDERED that Apple and its officers, agents, and employees, and all 

other persons in active concert or participation with it, who receive actual notice of this order, 

whether acting directly or indirectly, are restrained and enjoined for the term of this order from 

billing an account for any In-App Charge without having obtained Express, Informed Consent to 

Apple’s billing that account for the In-App Charge. If Apple seeks and obtains Express, 

Informed Consent to billing potential future charges for In-App Activities, Apple must allow the 

Account Holder to revoke such consent at any time. Apple shall fully comply with this Section I 

by no later than March 31, 2014. 

II. 

 IT IS FURTHER ORDERED that Apple shall provide full refunds to Account Holders 

who have been billed by Apple for unauthorized In-App Charges incurred by minors as follows:

A. Apple shall provide prompt refunds to Account Holders for the full purchase price 

of any Eligible In-App Charge(s). For purposes of this Section II, an “Eligible In-App Charge” 

is an In-App Charge that the Account Holder indicates was incurred by a minor and was 

accidental or not authorized by the Account Holder. For purposes of this Section II.A, a 

“prompt” refund means a refund provided within the later of fourteen (14) days of a request for 

refund of an Eligible In-App Charge by the Account Holder or the completion of a fraud 

investigation. Apple may decline a refund request for an Eligible In-App Charge only if it has 

sufficient credible evidence that the refund request is fraudulent. Apple may process all refund 

requests through its customer service channels, which include a contact phone number and web 

form through which consumers may contact Apple directly. 

B. Apple shall refund no less than $32,500,000.00 for Eligible In-App Charges 

pursuant to section II.A of this order, and such amount shall not constitute a penalty. Solely for 

the purposes of this section II.B of this order, Apple may approximate that 50% of all refunds 

provided to Account Holders for In-App Charges relate to Eligible In-App Charges. 

C. Within thirty (30) days of the end of the Consumer Redress Period, Apple shall 

provide the Commission with records sufficient to show the refunds requested and paid to 

Account Holders for In-App Charges during the Consumer Redress Period, and any requests that 

were denied under Section II.A of this order. 

D. If Apple fails to refund $32,500,000.00 pursuant to section II.B of this order, the 

balance of that amount shall be remitted to the Commission within forty-five (45) days of the end 

of the Consumer Redress Period. 

E. All funds paid to the Commission pursuant to section II.D of this order may be 

deposited into a fund administered by the Commission or its designee to be used for equitable 
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relief, at the Commission’s sole discretion, for informational remedies regarding In-App Charges 

by children or consumer redress and any attendant expenses for the administration of any redress 

fund. Any money not used for such purposes shall be deposited to the United States Treasury. 

Apple shall have no right to challenge the Commission’s choice of remedies under this 

Paragraph. 

F. Apple shall provide an electronic notice to any Account Holder who has made an 

In-App Purchase prior to March 31, 2014. Apple shall send such notice within fifteen (15) days 

after March 31, 2014. The electronic notice shall include a subject line relating to the content of 

the notice and contain the following information, disclosed in a Clear and Conspicuous manner 

and in writing: (1) that refunds are available for Account Holders that have been billed for InApp Charges incurred by minors that were accidental or not authorized by the Account Holder, 

(2) that such refunds are available until the end of the Consumer Redress Period, and (3) 

instructions regarding how to obtain refunds pursuant to section II.A of this order, including 

means of contacting Apple for a refund. Apple shall send the notice to the current or last known 

email address for the Account Holder. 

G. Sections II.A and II.B of this order shall be effective beginning on the date that 

the order is entered, and will terminate at the end of the Consumer Redress Period. 

III. 

 IT IS FURTHER ORDERED that Respondent and its successors and assigns for five (5) 

years after the date of issuance of this order, shall maintain and upon request make available to 

the Federal Trade Commission business records demonstrating their compliance with the terms 

and provisions of this order, including but not limited to: 

A. All consumer complaints conveyed to Respondent, or forwarded to Respondent 

by a third party, that relate to the conduct prohibited by this order and any responses to 

such complaints; 

B. Refund requests related to In-App Charges, and refunds paid by Respondent 

related to In-App Charges; and 

C. Records necessary to demonstrate full compliance with each provision of this 

order. 

IV. 

 IT IS FURTHER ORDERED that Respondent and its successors and assigns shall deliver 

a copy (written or electronic) of this order to all current and future principals, officers, and 

corporate directors, and to all current and future managers, employees, agents, and 

representatives who participate in the design or implementation of Respondent’s process through 

which Account Holders incur In-App Charges; the billing by Respondent of such charges; or 

Respondent’s customer service relating to such charges, and shall secure from each such person 

a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this 
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order to current personnel within thirty (30) days after the date of service of this order, and to 

future personnel within thirty (30) days after the person assumes such position or responsibilities. 

V. 

 IT IS FURTHER ORDERED that Respondent and its successors and assigns shall notify 

the Commission within fourteen (14) days of any change in the corporation that may affect 

compliance obligations arising under this order, including but not limited to a dissolution, 

assignment, sale, merger, or other action that would result in the emergence of a successor 

corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any 

acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in 

the corporate name or address. All notices required by this Part shall be sent by certified mail to 

the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade 

Commission, Washington, D.C. 20580. 

VI. 

 IT IS FURTHER ORDERED that Respondent or its successors and assigns shall, ninety 

(90) days after March 31, 2014, file with the Commission a report, in writing, setting forth in 

detail the manner and form in which they have complied with this order. Within ten (10) 

business days of receipt of a written notice from a representative of the Commission, Respondent 

shall submit additional compliance reports. 

VII. 

 This order will terminate twenty (20) years from the date of its issuance, or twenty (20) 

years from the most recent date that the United States or the Federal Trade Commission files a 

complaint (with or without an accompanying consent decree) in federal court alleging any 

violation of the order, whichever comes later; provided, however, that the filing of such a 

complaint will not affect the duration of: 

A. Any Part in this order that terminates in less than twenty (20) years; and 

B. This order if such complaint is filed after the order has terminated pursuant to this 

Part. 

Provided, further, that if such complaint is dismissed or a federal court rules that the 

Respondent did not violate any provision of the order, and the dismissal or ruling is either not 

appealed or upheld on appeal, then the order will terminate according to this Part as though the 

complaint had never been filed, except that the order will not terminate between the date such 

complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date 

such dismissal or ruling is upheld on appeal. Respondent may seek modification of this order 

pursuant to 15 U.S.C. § 45(b) and 16 C.F.R. 2.51(b) to address relevant developments that affect 

compliance with this order, including, but not limited to, technological changes and changes in 

methods of obtaining Express, Informed Consent. 

 

 
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Signed this day of , 20__ 

 APPLE INC. 

 By: _______________________________________ 

 M. SEAN ROYALL 

 Gibson, Dunn & Crutcher LLP 

 Counsel for Apple Inc. 

 By: _______________________________________ 

 Name: 

 Title: 

 Apple Inc. 

 

 FEDERAL TRADE COMMISSION 

 

 

 ________________________________________ 

 DUANE C. POZZA 

 Attorney for the Federal Trade Commission 

 ________________________________________ 

 JASON M. ADLER 

 Attorney for the Federal Trade Commission 

 ________________________________________ 

 MIYA S. RAHAMIM 

 Attorney for the Federal Trade Commission 

APPROVED: 

_______________________________ 

MALINI MITHAL 

Assistant Director 

Division of Financial Practices 
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_______________________________ 

JAMES REILLY DOLAN 

Acting Associate Director 

Division of Financial Practices 

________________________________ 

JESSICA RICH 

Director 

Bureau of Consumer Protection