Have a Good Life

• News Items
  • New Jersey toddler Ayaansh Kumar bought nearly $2,000 in Walmart furniture, unbeknownst to his parents
    https://www.washingtonpost.com/nation/2022/01/25/new-jersey-toddler-walmart-cart-online-shopping/
    • Mother Madhu Kumar shopped for furniture and other household goods but did not actually purchase them
    • Her son Ayaansh (22-months) was playing on her phone and somehow would up in the Walmart app, where he executed the purchases
    • His parents tried to cancel the undelivered orders but were unable to do so
    • They’ve arranged to return the items (most of them) to Walmart for refunds
    • Parents will install passcodes and prevent the automatic loading of payment info
• How It Happens
  • This is a problem that has been around since the rise of the world wide web (and probably even before that)
  • A kid with access to a parent credit card could use it online to make purchases, since there are no reliable tools for checking identity online
  • More recently, credit cards are stored by online merchants or in apps, making it much easier for unauthorized purchases to occur
  • So-called “bait apps” aggressively encourage children to make in-app purchases to enhance their playing experience
  • Problem has spread to smart speakers (Alexa,
• Legal Issues
  • Parents are legally liable for the purchases made by their children when children use their parents’ credit cards
    • Credit card companies that promise zero liability for unauthorized purchases may offer refunds but others will only do so if the card is lost or stolen
  • Refunds may be available
    • However, some service providers or game companies may refuse to issue refunds if payment is made through a third-party (the Apple Store, for instance)
    • Refunds may also be denied if you have made your child an authorized user
  • If the online service provider is guilty of fraud or inducements aimed at children, the Federal Trade Commission may order refunds
    • In 2014, the FTC settled a class action lawsuit with Google, Apple, and Amazon, in which all three companies paid millions in refunds.
• Recovery / Restitution
  • Try to cancel pending orders
  • Request refunds from the merchant
  • Dispute the charges with your credit card
  • Contact the Federal Trade Commission
  • Set up a GoFundMe?
• Prevention
  • Supervision and Education
    • Browser Filters
    • Parental Control Accounts
      • Apple’s Ask to Buy and Family Sharing sends a request to the card holder each time a child tries to make a purchase or download. You can eliminate in-app purchases entirely by turning on Screen Time on their devices.
    • Child-Specific Browsers
    • Help your child(ren) understand the use of credit cards and possible consequences
  • Clear Boundaries
    • Set up separate Apple IDs for children (make sure you know the password)
    • Turn on “guest mode” on your device (if available) before handing it to a child
    • Require password or biometric confirmation by an adult for purchases
  • Financial Restrictions
    • Do not link your credit card to apps used by your child
    • If your child is an authorized user, see if your credit card company will let you set a limit on his or her spending, or create real-time notifications for purchases
    • Consider using a debit card or topping-off card for in-app purchases
  • Device protection
    • Make sure that your device locks within a short time – 10–15 seconds
    • Use a password that is complicated/long enough that it cannot easily be memorized by a watching child
    • Try not to leave mobile devices unattended
• Resources
  • Advice and Tips - #2021–08–03 How to protect your credit card from small kids
    https://www.kaspersky.com/blog/save-credit-card-from-games-small-kids/40997/
    - #2021–01–26 Who’s responsible for your kids’ unauthorized credit card charges?
    https://www.cnbc.com/select/whos-responsible-for-kids-unauthorized-credit-card-charges/
    - #2019–08–23 Children and Internet: How to avoid accidental purchases
    https://www.santander.com/en/press-room/dp/children-and-internet-how-to-avoid-accidental-purchases
    - #2019–01–25 5 Ways to Curb Kids’ In-App Purchases on the iPhone
    https://www.commonsensemedia.org/blog/5-ways-to-curb-kids-in-app-purchases-on-the-iphone
    - #2018–08–18 How To Prevent Your Kid From Ordering $400 Worth of Toys on Amazon
    https://thepointsguy.com/news/how-to-prevent-your-kid-from-ordering-toys-on-amazon/
    - #2018–04–18 How to Stop Your Kids From Buying Stuff in Fortnite
    https://lifehacker.com/how-to-stop-your-kids-from-buying-stuff-in-fortnite–1825339110
    - #2014–03–31 Apple Lets Parents Get Refunds for In-App Purchases
    https://www.nbcnews.com/business/consumer/apple-lets-parents-get-refunds-in-app-purchases-n67811
    - #2013–04–16 How to Prevent Your Kids From Spending Thousands of Dollars on In-App Purchases
    https://www.howtogeek.com/142491/how-to-prevent-your-kids-from-spending-thousands-of-dollars-on-in-app-purchases/
  • Cautionary Tales - #2021–05–07 A mom panicked when her 4-year-old bought $2,600 in SpongeBob Popsicles. Good Samaritans are paying.
    https://www.washingtonpost.com/lifestyle/2021/05/07/spongebob-popsicles-noah/
    - #2021–02–16 Boy, 7, accidentally spends £1,200 on online games, including £800 on virtual cat food
    https://www.mirror.co.uk/news/uk-news/boy–7-accidentally-spends–1200–23508222
    - #2020–12–13 Child spends $16K on iPad game in-app purchases
    https://appleinsider.com/articles/20/12/13/kid-spends–16k-on-in-app-purchases-for-ipad-game-sonic-forces
    - #2020–03–11 My kids spent £600 on their iPads without my knowledge #Roblox
    https://www.theguardian.com/money/2020/mar/11/my-kids-spent–600-on-their-ipads-without-my-knowledge
    - #2019–07–15 ‘My son spent £3,160 in one game’
    https://www.bbc.com/news/technology–48925623
    - #2018–03–23 Parents Are Sharing the Hilariously Random Things Their Kids Accidentally Purchased Online
    https://www.workingmother.com/parents-are-sharing-the-hilariously-random-things-their-kids-accidentally-purchased-online
    - #2017–01–27 Amazon’s Alexa started ordering people dollhouses after hearing its name on TV
    https://www.theverge.com/2017/1/7/14200210/amazon-alexa-tech-news-anchor-order-dollhouse
    - #2016–11–23 11 WTF Items That Kids Ordered Online Without Telling Their Parents
    https://cafemom.com/parenting/202014–11_wtf_items_that_kids
    - #2016–04–24 A car, flights and a 6ft Womble cutout: What kids accidentally bought on their parents’ phones
    https://metro.co.uk/2016/04/24/a-car-flights-and-a–6ft-womble-cutout-what-kids-accidentally-bought-on-their-parents-phones–5837975/
    - #2013–07–13 U.S. toddler accidentally buys car while playing with dad’s smartphone
    https://www.ctvnews.ca/sci-tech/u-s-toddler-accidentally-buys-car-while-playing-with-dad-s-smartphone–1.1365693
    - #2013–03–02 5 year old accidentally spends $2570 on iPad in-app purchases
    https://www.slashgear.com/5-year-old-accidentally-spends–2570-on-ipad-in-app-purchases–02272254/

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