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The fundamental flaw with EU 14-day refunds: you keep the app forever

A week ago, Apple introduced 14-day no-questions-asked refunds in the EU for iTunes Store and App Store content. This means that, without the need for a reason, any Apple customer in Europe can get their money back for (primarily) app purchases in 5-7 days time. That’s how it is described, at least.

This opens up some possibilities for abuse. For instance, if you complete a game within two weeks, then you can get your money back and end up paying nothing. As a developer, I tested this out myself. It turns out there is an even bigger problem. At least, right now, when the refund is processed, the app continues to work. You get the app for free, forever.

What happens is the app gets removed from your ‘Purchased’ account history, so it’s not possible to re-download the app from the store. However, as long the app is already downloaded to a device, the file never gets deleted and never stops working. This means the app is still accessible from the Home Screen and is fully-functioning.

The IPA file is also still in iTunes on my Mac, so theoretically I could delete it from my phone and sync it back via the computer whenever I wanted. Furthermore, even if I do lose the file one day, I can technically just buy the app again and get it refunded … again.

I only tried this with apps but the ‘technique’ (if you can call it that) should also work with music, films and books. This seems like a big problem, for developers at least. Free apps and free content. I’m not sure whether this is intended behavior or not, but I do think it’s stupid and potentially very damaging to the developer community, once the general public catches on that this is possible.

I would expect Apple to track abuse of this feature, but right now I don’t think there’s anything they can do about it, for the time being. They can’t stop people from using the feature — it’s now EU law — and it doesn’t seem like they could change the functionality without a software update (i.e. actually having the app deleted when a refund is processed).

We contacted Apple to get some clarification on the intended behavior of this system for the story, but the company did not respond.

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Comments

  1. This is what I was saying. People will be stealing from developers. There should be something like 30 minutes demo of the app and then either you buy it or not. The end.

    • Or Max 14 days and N usage sessions or N hours of usage. For example, for a game it could be Max 14 days, 10 plays, and 2 hours of play. The last two conditions chosen by the developer.

      If after 10 plays and 2 hours of play you continue using the app, you won’t be able to cancel your purchase.

      • heinzskies - 9 years ago

        You can’t just do “10 plays” or “2 hours” and disable to ability to cancel the purchase, it’s in the law that you must provide a refund within 14 days no question asked.

    • Soluble Apps - 9 years ago

      The article is poorly researched, and incorrect.

      Apple do not allow EU customers to return an app after they have started downloading it. It says so in their new App Store agreement,

  2. Michael Weisberg - 9 years ago

    But…do you continue to receive updates to the app?

    • Cherry Barry - 9 years ago

      No after that, you won’t be able to update the app anymore

      • GeniusUnleashed - 9 years ago

        Read the whole thing. He can just download the app again after an update and then return it agian.

  3. Galuszka - 9 years ago

    No! It is not the EU law. Eu law allows you to return digital goods for 14 days as long as you DO NOT start downloading them! Apple has applied this law in more user friendly and thus more fraud friendly manner. I hope that they will change it to reflect exact EU law.

    • Fallenjt JT - 9 years ago

      Apple can force you to delete the app before the return can be processed like putting auto delete the apple on your device.

  4. Willy (@Willy_tr) - 9 years ago

    I think that they will do something if someone buys 600 apps and always ask for a refound.

    Also if an app is not in your “purchased” list you will not receive any future upgrade.

    It’s still a problem tough, specially for expensive apps like professional ones or offline gps navigators.

    • You won’t be able to download updates. You also can’t redownload if, for example, you get a new phone.

      • False and umm, false. You can update when it’s on your device. And you can put it on any future device via iTunes.

      • Willy (@Willy_tr) - 9 years ago

        If you have the .ipa file in your itunes library you can, i installed flappy birds on my iPhone 6

      • Unless of course Apple has materially changed the upgrade process since I tested this.

      • Adam C (@AdamChew1) - 9 years ago

        @Bruno
        Perhaps English is not your first language so You are forgiven for passing the wrong information.

  5. Galuszka - 9 years ago

    Extract from official European Union website:

    “Digital content

    Specific information requirements apply when you buy digital content online, e.g. when downloading or streaming music or video. Before you make the purchase, you must also be informed how the content operates with relevant hardware/software (interoperability) and about its functionality, including whether any geographical restrictions apply to the use of the content and if private copies are allowed.

    You also enjoy the right of withdrawal within 14 days from concluding the contract for online digital content. However, once you start downloading or streaming the content you may no longer withdraw from the purchase, provided that the trader has complied with his obligations. Specifically, the trader must first obtain your explicit agreement to the immediate download or streaming, and you must explicitly acknowledge that you lose your right to withdraw once the performance has started.”

    reference: http://europa.eu/youreurope/citizens/shopping/buy-sell-online/rights-e-commerce/index_en.htm

    • chrisl84 - 9 years ago

      “Specifically, the trader must first obtain your explicit agreement to the immediate download or streaming, and you must explicitly acknowledge that you lose your right to withdraw once the performance has started.”

      From your own this post proves Apple is following the law, Apps auto-download without explicit agree and explicitly agree to lose withdrawal rights.

      • Tim LeVier - 9 years ago

        I think you’re right about that. I think Apple’s probably doing this at first (even taking the hit) because the hit is going to be less expensive than not complying at all (shut down or fine for failure). I’d imagine that Apple is hard at work separating out the “Buy” and the “Download” process for the EU digital stores. It will be more cumbersome for customers, but the law is the law, eh? Once that new purchase/download process is rolled out, the gravy train will end.

  6. I don’t see what the big deal is. Google Play store had this for ages. In fact, Apple generally did refund apps in the past, too, and allowed you to keep it (albeit without future updates or re-downloads). It’s nothing new, just finally is formalised. And bottom line is, among some really stupid european laws, this is one of the better ones that protect customer. Every online purchase is open to abuse – user can use product for 14 days before returning it, what stops me from returning and re-purchasing product over and over?

    • All refunded software in the past was able to be updated. I tested this for friends with apps in the store a few times some years back. Plus one legitimate refund of a purchased app. I had to finally delete the IPA from iTunes and my devices and just forget about it to get rid of it.

      • Byron C Mayes, CSW - 9 years ago

        The operative words are “some years back.” Yes that used to be the case, but as of last year (summer I believe) it changed. If you get a refund, you cannot re-download and you do not get updates unless you buy the product again. You can, however, keep the current file on your device and use it as is. If you have the .ipa in iTunes, you can probably load that up, but again no updates. If you change devices or an iOS update renders that version inoperable, you have to buy again.

  7. chrisl84 - 9 years ago

    This was obviously going to the case and even if Apple takes steps to force delete that app, just like you said the user can just buy and return again anyways.

  8. It’s always been like this. In fact, you can actually still update the app forever too. And it’s been abused since the store first opened.

    • icatsoftware - 9 years ago

      Can’t update anymore. However you can keep the app forever. There numerous threads on the developer forums about this. Apple is simply allowing users to steal from us. There is a simple way to protect ourselves but the app has to ask for purchase receipt at startup (requires Internet connection). However not very good in regards user experience.

      • chrisl84 - 9 years ago

        Apple isnt allowing jackcrap to steal from you. The EU is!

      • “Apple is simply allowing users to steal from us”

        Give me a break. There are two sides of the story here. If your app is a piece of crap and doesn’t do what I need, then there’s no reason why I shouldn’t be able to get a refund, especially since there’s no way I can test it beforehand. That’s a legitimate reason for allowing refunds.

        Having said that, Apple does need to figure out a way that a user can download and “try” an app, for a set amount of time – say 15 minutes. They also need a way to blacklist the app, so the user can no longer use it after a refund is offered.

      • @chrisl84 – no, it’s Apple. The EU’s law is reasonable, the way Apple has always handled refunds and the way they implement software protection on iOS are not. Incidentally, the EU law does not require Apple to provide the kind of refunds it now allows as there’s an exception for digital downloads.

        Apple could do a lot to make this “fair” but it would require a lot of work and potentially end up with other loopholes and hassles for everyone involved. Timed usage-based eligibility for refund, time-limited demo modes, etc.

  9. OneOkami (@OneOkami) - 9 years ago

    I don’t know all the details but it sounds to me like that law may be fundamentally flawed it may make the assumption that all goods and services can actually be revoked upon a refund which is something that made sense years ago but not necessarily in the digital age we’re in now.

    Not all “goods” are tangible entities that you could necessarily enforce a “return” on upon refunding. Sounds to me like Apple may possibly have to apply more invasive, license-based DRM on apps to stop them from functioning.

    Again, I don’t know all the details here, just sharing some general thoughts on this.

  10. sonyc91 - 9 years ago

    Apple made what it had to respect the law, but no doubt Apple’s engineers are working behind the scene to make refunded apps unusable by the customer as soon as possible.

    • windlasher - 9 years ago

      If you are one, or know of any avid gamers, finishing a game in a week is not a big thing. If you have 2 weeks to finish the game and still get your money back disabling it won’t matter much. It will just force those jerks to binge play until completed.

      • Jim Phong - 9 years ago

        Exactly. Any app or game must be deleted and be unusable just immediately after a customer got a refund. And still it won’t fix the possible abuse of those with time to waste to finish a game after another for free that way…
        The EU is a cancer with its laws that destroy the economy and please thieves.

  11. “actually having the app deleted when a refund is processed”

    iOS is capable of this now. But Apple has gone on record saying they would only use it for malicious apps that make it onto user’s devices.

    • thinkman12345 - 9 years ago

      If they’re capable of deleting the App from your devices, than they MUST! Too many dishonest sh!theads in this world just looking for an opportunity to steal!

  12. BTW, I mentioned this immediately when the news broke on this change. That

    1. You keep the app
    2. The app continues to work indefinitely
    3. The app can be put on any iOS device – doesn’t even matter if it’s your device
    4. You can update the app into the future

  13. nu nu (@vainboxtech) - 9 years ago

    Has it not occurred to you that most people are honest and therefore will only ask for a refund if the app was not as advertised/did not live up to its promise? In the US, people let corporations abuse them (just look at the mobile phone contract rules/pricing, to say nothing of the health insurance industry). In the rest of the world, people think that corporations have to deliver products and services that people actually like if they are to take their money.

    • OneOkami (@OneOkami) - 9 years ago

      Yes, only in the U.S. will you find a significant number of dishonest people willing to exploit a flaw.

    • windlasher - 9 years ago

      Lets say most people are honest. Lets also say (lets go with 1 million and make things easy) of those “mostly honest people” download the latest and greatest game – play it for two weeks, finish it, and then ask for a refund. Does the developer get to keep the money. Probably not. So you have a developer that busted his ass to create a great game and 1 million jerks who feel they are entitled to play it for free.

      I hope Apple is working night and day on a delete function as we speak. I also hope there is some sort of limit to how many refunds you can have on your account at a time.

      And don’t give me the old “only in the US” speech. After the Boston Marathon it was “only in the US” does this kind of thing happen. Seen Paris recently?

      Being an ass isn’t a border thing.

    • thinkman12345 - 9 years ago

      “Has it not occurred to you that most people are honest”! I really have to ask what planet you live on.

  14. Patrick Kormann - 9 years ago

    Acutally that’s at least partly a flaw of Apple and not of the EU laws… but I find it as bad that you can send any ‘real’, hardware article back within 14 days (i.E. cloths). Thats bad for vendors AND customers.

    • thinkman12345 - 9 years ago

      How is that bad for customers (or vendors for that matter)? Should we accept defective or misrepresented purchases? Do your size 9 feet enjoy the extra roominess of a mistakenly sent size 12 shoe so much that you would keep it? Get real.

      • cdmoore74 - 9 years ago

        It’s one thing to have something defective. But there are people right now that are swappable iPhones from the 6 to 6 plus since the phone was released. Or using iPads on a 2 week period. Plenty of people abuse the system.

  15. hpapagaj - 9 years ago

    What the fuck are you talking about?

    http://www.cnet.com/news/apple-app-store-hits-half-billion-in-sales-during-first-week-of-2015/

    BTW, I have a webshop in EU and users can send me back products for any reason within 14 products. Why would the App Store an exception? BTW2 If you not advertise the refund process, many users not knowing about it.

  16. windlasher - 9 years ago

    So – Download all the music you want – Burn it to CD, ask for a refund, rip it back to you machine… Sorry, but thats just wrong.

  17. zeromeus - 9 years ago

    “….. but I do think it’s stupid and potentially very damaging to the developer community, once the general public catches on that this is possible.”

    So… just to make sure that more users abuse this glitch so that all developers suffer, you decided to make this public information? How kind of you!

  18. thinkman12345 - 9 years ago

    “I do think it’s stupid and potentially very damaging to the developer community, once the general public catches on that this is possible.” And now that you’ve made this pubic information, this abuse will rise exponentially! Good work!

    Also, “We contacted Apple to get some clarification on the intended behavior of this system for the story, but the company did not respond.” is pretty laughable since they NEVER respond to sites like yours – often not even to the NYT or WSJ. So big surprise there. I often wonder why journalists even include such a ludicrous statement as that — perhaps it’s arrogance on your part, i.e., why would they!?

  19. iSpiny (@iSpiny) - 9 years ago

    This is nothing new – it has been the situation for at least a year. It’s been possible to get a refund, no questions asked, and you keep the app.

  20. Abbi Vakil (@AbbiV) - 9 years ago

    There are way too many uninformed comments on this topic. It’s probably because the behavior of refunds on the App Store has changed since they last requested a refund :-/

    Yes, you can download an App and request a refund, get the money back and still continue using the App. However, you lose the ability to upgrade it & you can no longer re-download it to your other devices directly (until a year ago, it used to be that you could). You can however manually sync it via iTunes and continue using the version you initially “bought.” One problem: let’s say this App becomes temporarily free in the future (as part of a sale or promo) & you wish to “get” it again- the iTunes Store will continue to show that you do not own it. So if you try to upgrade it or load on another device, you will be asked to buy it again since Apple has flagged your account as having returned the App.

    It used to be that there were no consequences to buying and returning an App, but Apple changed their policy about what would happen once you had requested the refund to no longer allow updates and re-downloads. And just like retail stores that track refunds and return abusers, Apple also tracks how many refunds you have requested and makes it increasingly hard to get your money back.

    IMO, developers should be happy about refunds. I would think people will be willing to pay more for quality Apps and any hesitation one has about whether an App is worth it or not can be set aside knowing that refunds are easy. I wish Apple had instituted this policy early on so that App pricing would not have been a crazy race to zero. But I bet it served their cause (of selling as many iPhones as possible) to keep App prices low…

  21. You can do this in North Amercian Market as well:
    1. I bought the app to remote control my pc. But it was crashing and I called apple to get refund and I did.
    2. App was updated right after i received refund. It is still on my phone. It gets all the updates. No problem at all.
    3. If you delete the app,it is still inside your purchases and you can download it anytime.
    4. If you hide the purchase You may not be able to download the app anymore for free. Unless you have iTunes back up to pc which transferred the app.

    the app was removed from my account after hiding it.

  22. ozthegweat - 9 years ago

    The article uses “Europe” and “EU” interchangeably, although those two are not the same. So is this new policy in effect in all European countries or just in those in the EU?

  23. Johan Gunverth - 9 years ago

    Well, Apple can revoke apps included in new hardware purchases. That is: apps OFFERED to the first user of the device. These are connected to same users AppleID and stays there until the owner of the device e.g. a school orders a fulfillment from Apple for the “lost” apps. The apps are then revoked from the aforementioned AppleID and added to the device owners VPP account.

  24. An even bigger flaw as I understand it is that the developer loses 100% of the price even though they only got 70% or at least certainly that was the case a couple years ago.

  25. Silvio Sousa Cabral - 9 years ago

    Isn’t amazing how people are never satisfied enough with this? Once upon a time the problem was the lack of refunds.

    Imagine how good it is for Apple to hear that considering that people are claiming for trials/demos of apps for years. The concept is the same. Give 7, 5 or even 2-day trials: if somebody finishes a game in that time window (and yes, people can), it’s going to be stealing. But if nothing like exists, Apple is the Blackwater of the app platforms.

  26. Nico Arvy (@nicosarv) - 9 years ago

    I think generally abuse can happen with anything, but most people will not do this though there will always be exceptions. My personal experience with a refunded app (before I deleted it) is it does work, but it DOES NOT update anymore as it’s no longer registered on iTunes as a purchase. So you can if you want get the app free, but you will miss out on any security or other improvements via updates.

  27. migsimoes (@migsimoes) - 9 years ago

    we don’t see it as problem, this law is older than iPhone or iPod. Apple was already at least during last year practicing it. it is a easy law, if the customer is not happy with the product that he bought, he have the right to be full refunded without any question. that applies to all sellable products in EU countries. this gives us as customers to decide to buy only good products, if they are worstless, just give it back, and at the same time will awake the producers to don’t sell crap, or to be more explicit when they describe what they want to sell. in case of possible fraud, can not being seen as a problem for the consumer, the consumer don’t have the power to change the product, the producer has to protect their product against fraud :)

    • icatsoftware - 9 years ago

      You really don’t know what you are talking about.
      We are absolutely 100% in favor of refunds.
      BUT we want the app deleted from the refunded account.
      What Apple is allowing is ABUSE with no control over it. Refund and Delete should be in place.
      Otherwise it’s like buying an iPhone, get a refund and keep it (without being able to update it). If you ask me I would definitely go for that…

  28. PMZanetti - 9 years ago

    No refunds. Don’t buy if you don’t want. That is key to the economy. How stupid can this get,

  29. Oğulcan Girginç - 9 years ago

    Kill Your App Any Time: Section 8 makes it clear that Apple can “revoke the digital certificate of any of Your Applications at any time.” Steve Jobs once confirmed that Apple can remotely disable apps, even after they have been installed by users. This contract provision would appear to allow that.

    http://9to5mac.com/2015/01/07/eff-app/

  30. hasselovborg - 9 years ago

    I believe that the actual amount of people abusing this system is very limited. I have owned an iphone since they were first released in the EU and have so far refunded 1 (ONE) app, and this was way before this change came about from Apple. I have on the other hand purchased hundreds of apps in different price ranges.

    I work in the IT industry supporting the SMB market and almost 95% of my customers use iPhones and/or iPads, and not a single one has to my knowledge returned an app, most don’t know how, and many think that since i paid €10 or less, i don’t care…. I also think that since the price of most apps are so low, I don’t mind buying an app just to test it, since my loss in case of a crappy app is minimal, and many times the flaws are corrected along the line with an update. I think the App Store is a great way to promote and distribute apps both for iOS and OS X, and I ALWAYS avoid getting an app outside the Mac App Store too if it can be avoided. Same refund policy applies there in the EU. So I could do the same with Final Cut X if it pleased me.

    For me the hassle free user friendly App Stores makes me want to pay for my content and apps cause of the way its implemented, and that I get essentially free app updates forever adding to the value of purchased apps.

    Strong consumer protection is one of EUs best designed laws among other ridiculous ones, and is key to drive the creation of useful quality apps, content and “analog” products, and enables the evolution of internet stores. people in the EU shop all sorts of goods online like crazy knowing that its risk free and that returns and refunds are an essential part of any purchase should anything not be up to standard.

    That said Im going to the post office to return a pair of boots……

  31. Jim Phong - 9 years ago

    This doesn’t make any sense! Why is Apple not revoking the purchase? If a customer gets a refund then the product must be revoked and not left available.
    What the heck is Apple management thinking? The EU law is a huge nonsense mess but it surely doesn’t tell that Apple has to leave any refunded app installed and available forever.
    If you give a product back to any shop and you get a refund it’s not that the shop owners would ever accept to give it away to you…

  32. Robert Nash (@RJ_Nash) - 9 years ago

    I have no idea why Apple allow this. If you get a refund on a Kindle purchase Amazon delete it from your device.

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Avatar for Benjamin Mayo Benjamin Mayo

Benjamin develops iOS apps professionally and covers Apple news and rumors for 9to5Mac. Listen to Benjamin, every week, on the Happy Hour podcast. Check out his personal blog. Message Benjamin over email or Twitter.