South Korea's Fair Trade Commission has ordered Apple and Google to revise their App Store refund policy, according to a report from the Korea Herald. Currently, users must submit a request for a refund and have the request reviewed by Apple before a refund is allowed.
Apple has reportedly responded to the ruling and said it would create a new automated refund system for the Korean App Store, and possibly roll out the system worldwide. Korean Officials have required that Apple notify customers when they have rolled out such a change.
Following the FTC orders, the Google Play webstore will design a customer refund system based on Web developers’ refund polices. Apple’s iTunes app store will have to send a notice to users when it changes the terms in its contract.
“The FTC’s corrective orders will become benchmark cases for other countries, which face growing customer complaints over unfair provisions in contracts of mobile webstore operators,” said Hwang Won-chul, head of the KFTC’s Adhesion Contract Division.
“While Google will limit its response to the FTC to the domestic market, Apple said it would consider applying the revised contract terms globally,” he added.
The original complaint came from the Citizens’ Coalition for Economic Justice, a nongovernmental organization that asked the FTC to correct unfair sales practices certain App Stores. The same coalition that brought this complaint to the Korean FTC plans to file a complaint against Apple's iPhone Repair Policies. The group argues that customers cannot get their original iPhone back if service is required since many iPhone repairs simply replace the device instead of repairing it.
Apple has reportedly responded to the ruling and said it would create a new automated refund system for the Korean App Store, and possibly roll out the system worldwide. Korean Officials have required that Apple notify customers when they have rolled out such a change.
Following the FTC orders, the Google Play webstore will design a customer refund system based on Web developers’ refund polices. Apple’s iTunes app store will have to send a notice to users when it changes the terms in its contract.
“The FTC’s corrective orders will become benchmark cases for other countries, which face growing customer complaints over unfair provisions in contracts of mobile webstore operators,” said Hwang Won-chul, head of the KFTC’s Adhesion Contract Division.
“While Google will limit its response to the FTC to the domestic market, Apple said it would consider applying the revised contract terms globally,” he added.
The original complaint came from the Citizens’ Coalition for Economic Justice, a nongovernmental organization that asked the FTC to correct unfair sales practices certain App Stores. The same coalition that brought this complaint to the Korean FTC plans to file a complaint against Apple's iPhone Repair Policies. The group argues that customers cannot get their original iPhone back if service is required since many iPhone repairs simply replace the device instead of repairing it.