Archive for the ‘iPhone App Store’ Category


App refund clause nothing new

March 26, 2009

TechCrunch, and others, reported yesterday that Apple’s new iPhone 3.0 SDK agreement could bankrupt developers. Apple’s contract states:

In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application.

In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end.

But today, CNET says it’s “much ado about nothing.” The article is pretty lengthy, but in a nutshell:

The clause has always been in the contract. And even if someone wants a refund, it’s not easy to get. Apple will most likely replace apps that have technical problems. If you really want a refund, you will have to file something legal. You can’t complain that an app didn’t live up to your expectations.

Apple has granted some refunds although it’s a very, very small number. And the money the developer loses goes towards paying the processing transaction fees.

iPhone App Store