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Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of Google Inc., File No. 122 3237

The Federal Trade Commission (“Commission”) has accepted, subject to final approval, 

an agreement containing a consent order from Google Inc. (“Google”). 

The proposed consent order has been placed on the public record for 30 days for receipt 

of comments by interested persons. Comments received during this period will become part of 

the public record. After 30 days, the Commission will again review the agreement and the 

comments received, and will decide whether it should withdraw from the agreement and take 

appropriate action or make final the agreement’s proposed order.

Google bills consumers for charges related to activity within software applications (“apps”) 

that consumers download to their mobile devices from Google’s Google Play store. This matter 

concerns Google’s billing for charges incurred by children in apps that are likely to be used by 

children without having obtained the account holders’ express informed consent. 

The Commission’s proposed complaint alleges that Google offers thousands of apps, 

including games that children are likely to play, and that in many instances, children can obtain 

virtual items within a game app that cost money. Google bills parents and other adult account 

holders for items that cost money within an app—“in-app charges.” In connection with billing for 

children’s in-app charges, Google in many instances did not request a password or other method 

to obtain account holder authorization. Currently, in connection with billing for children’s 

in-app charges, Google only sometimes requests a parent’s Google password. In many instances, 

once the password is entered, Google begins a thirty-minute window during which purchases can 

be made by children without further action by the account holder. During this process, Google in 

many instances has not informed account holders that password entry will approve a charge or 

initiate a thirty-minute window during which children using the app can incur charges without further 

action by the account holder. The Commission’s proposed complaint alleges that, through these 

practices, Google often has failed to obtain parents’ informed consent to charges incurred by 

children, which constitutes an unfair practice under Section 5 of the FTC Act. 

 

The proposed order contains provisions designed to prevent Google from engaging in the 

same or similar acts or practices in the future. Part I of the proposed order requires Google to 

obtain express, informed consent to in-app charges before billing for such charges, and to allow 

consumers to revoke consent to prospective in-app charges at any time. As defined in the 

proposed order, express, informed consent requires an affirmative act communicating 

authorization of an in-app charge (such as entering a password), made proximate to both an 

in-app activity for which Google is billing a charge and a clear and conspicuous disclosure of 

material information about the charge. Under the definition, the act and disclosure must be 

reasonably calculated to ensure that the person providing consent is the account holder (as 

opposed to the child). The proposed order would require the disclosure to appear at least once 

per mobile device. 
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Part II of the proposed order requires Google to provide full refunds to Google account 

holders who have been billed by Google for unauthorized in-app charges incurred by minors, for 

a year following entry of the order. If Google’s refunds total less than $19 million, Google will 

remit any remaining balance to the Commission to be used for informational remedies, further 

redress, or payment to the U.S. Treasury as equitable disgorgement. To effectuate refunds, 

Google must send an electronic notice to its consumers that clearly and conspicuously discloses 

the availability of refunds and instructions on how to obtain such refunds. Within 30 days of the 

end of the one-year redress period, Google must provide the Commission with records of refund 

requests, refunds paid, and any refunds denied.

Parts III through VII of the proposed order are reporting and compliance provisions. 

Part III of the proposed order requires Google to maintain and upon request make available 

certain compliance-related records, including certain consumer complaints and refund requests,

for a period of five years. Part IV is an order distribution provision that requires Google to 

provide the order to current and future principals, officers, and corporate directors, as well as 

current and future managers, employees, agents, and representatives who participate in certain 

duties related to the subject matter of the proposed complaint and order.

Part V requires Google to notify the Commission of corporate changes that may affect 

compliance obligations within 14 days of such a change. Part VI requires Google to submit a 

compliance report 90 days after entry of the order. It also requires Google to submit additional 

compliance reports within 10 business days of a written request by the Commission. Part VII is 

a provision “sunsetting” the order after 20 years, with certain exceptions. 

The purpose of this analysis is to aid public comment on the proposed order. It is not 

intended to constitute an official interpretation of the complaint or proposed order, or to modify 

in any way the proposed order’s terms.