Kids In-App Purchases: Parental Accountability Questioned
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In the digital age, children's gaming apps have become increasingly popular, offering a wide range of in-app purchases that can include bridging waiting times, acquiring special equipment, or buying in-game currencies like coins or jewels. These purchases can quickly accumulate costs, and it's essential for parents to understand their responsibilities regarding these transactions.
In Germany, the burden of proof for unauthorized in-game purchases lies with the parents. Under German consumer protection law and general EU regulations, parents or guardians bear financial responsibility for unauthorized or unintended in-app purchases made by minors, unless the parents have taken sufficient preventive measures.
To prevent problems with in-app purchases, parents can employ several strategies. Firstly, they can secure purchases with a password or disable them in the app store. On Apple devices, for instance, parents can go to Settings > Screen Time > Content & Privacy Restrictions > iTunes & App Store Purchases > In-App Purchases and disable them entirely or require their Apple ID password for each purchase. On Android, apps like "Kids Place Parental Control" can block purchases and app downloads, add profiles, and set screen time limits to prevent accidental or unauthorized purchases.
Parents can also use built-in parental controls on devices. Disabling in-app purchases, requiring passwords for purchases, or enabling "Ask to Buy" features in family sharing settings can help prevent unintended in-app purchases.
In Germany, children under 7 years old are not legally competent and cannot conclude valid contracts such as in-game purchases. For children and teenagers aged 7 to 18, prior approval is not necessary for in-app purchases under the "pocket money paragraph" if legal guardians agree with the purpose. However, if the amount spent is too high or a subscription is concluded, the paragraph does not apply.
Alexander Wahl from the European Consumer Centre Germany (EVZ) states that these games encourage spending money, and children and teenagers often play free-to-play games like Fortnite, Brawl Stars, or Clash of Clans, which encourage in-app purchases. If children use parents' access or credit card data for in-app purchases, parents must prove they did not make the purchase themselves.
If parents object to an unauthorized in-game purchase, they should do so as soon as possible. If children have made a purchase unsupervised, parents should object as soon as possible. If a purchase was not made for the first time by the child, it is assumed that parents have tolerated the expenses, according to Alexander Wahl.
In summary, parents can prevent in-app purchases by disabling in-app purchases in device settings, requiring passwords for purchases, using family sharing control features like "Ask to Buy," or using third-party parental control apps that block purchases. If parents fail to implement reasonable controls to prevent unauthorized purchases, they may be held liable. However, if a purchase is clearly unauthorized and the parents have taken reasonable steps to prevent it, they may seek refunds or compensation from the app store or service provider.
