April 21, 2011
quoted partner Gonzalo E. Mon in the article, "Class-action Suit Against Apple Could Jeopardize In-app Purchasing." Apple has been hit with a class-action lawsuit alleging that applications and games for iPhone, iPod touch and iPad with in-app purchasing for virtual goods or premium features are part of a "bait-and-switch scheme" targeting children.
"Although the plaintiff refers to Apple's business model with loaded phrases such as ‘bait-and-switch scheme' and ‘unlawful exploitation in the extreme,' there is nothing unlawful about the business model itself," said Mr. Mon.
"It is generally fine to offer a free application and allow consumers to purchase additional benefits, as long as the costs associated with those benefits are clearly disclosed," he said. "If this case proceeds to trial, the decision may turn largely on how clearly the disclosures were made."