Apple Inc.’s (AAPL) App Refund Policy Opens Door for Profit Scammers


A report of Korea’s time criticized US tech giant Apple Inc. for its mobile app refund policy.

According to the report, some users are abusing the refund policy and the company should allow content developers to participate in the refund process.

Apple “provides ammunition to attackers who benefit from loopholes in their reimbursement policies for closed mobile app stores,” the Times reported.

Gaps in the refund policy

Apple has full control over the payment of refunds from paid mobile applications. The company determines whether to reimburse consumers.

The content developer wishes to participate in the process as part of the company’s refund policy. In order to protect the rights of consumers, Apple does not provide information about the users who requested and received the refund. This is a problem for app developers, as they have to manually find users and check if they “continue to use billed content for which they have already received refunds.” Application developers want the company to allow them to see user details because the manual verification process takes a long time.

According to the report, app developers are concerned about the misuse of the refund policy by some users. They found that some users abused the policy loophole to purchase paid content multiple times, request refunds, and continue consuming the content without actually paying for it.

“In particular, some of the abusers have organized profitable businesses to handle the reimbursement process on behalf of others,” according to the report.

No action yet from Apple

The report suggests that Apple Inc. has taken no action to resolve this issue. The iPhone maker hasn’t released any statements regarding flaws in its refund policy.

The misuse of Apple’s refund policy is hitting mobile game companies hard financially. So game development companies and developers are taking their own steps “to counter Apple,” which has so far been silent on the issue.

Flint, a Korean mobile game development studio, discovered that hundreds of users were abusing the refund policy. The studio, which offers the mobile role-playing game “Dragon Blaze” through its distribution partner Gamevil, said it had started a full analysis of user data on November 23.

“By analyzing all payment data and logs, we found around 300 users suspected of abusing the App Store refund policy,” Flint CEO Kim Young-mo wrote in a post. on the official Dragon Blaze online community. “We are committed to rooting out the attackers by asking the judicial authorities for an investigation. “

Next Floor, which distributes the Destiny Child mobile game in Korea, is also dealing with abusers without Apple’s cooperation. “We regulate those who abuse the payment process and damage other users as part of our management policy,” Next Floor said, noting that “unlike other app stores, Apple does not provide refund information to the game companies and we are having difficulty dealing with the problem quickly. “

In addition, mobile game studio Nexon and Longtu Korea said they asked Apple Inc. for lists of users who repeatedly requested refunds, but the company did not respond.

“The company asked Apple for lists of users who have repeatedly requested refunds,” said a source from a mobile game company. “But Apple didn’t respond. I cannot understand Apple’s policy in that it does not provide the list of people who abuse the system even when it is already causing problems in the market.

Apple should take action against abuse of the refund policy of these app stores as soon as possible.

In addition, a new study by the Chartered Trading Standards Institute has shown that Fake iPhone chargers pose a significant security risk to consumers. In October, the iPhone filed a complaint claiming that 90% of official charges sold on Amazon are fake.

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