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Apple Keeps Commission from Refunded Apps

March 26, 2009 by Simon Sage - Leave a Comment

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If you were still feeling fuzzy-wuzzy for Apple after all the developer love at their OS 3.0 announcement, be prepared for disappointment. There’s apparently a clause in the App Store terms of service which states that not only will developers return the full cost when a return is demanded by a customer within 90 days of purchase, but Apple retains their 30% finders fee. Here are the specifics:

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.

Before we start cracking open the Haterade , let’s consider some of the justifications for such a clause. For one, it ensures some quality assurance on the developers’ part. If apps were returned consequence-free, Apple would be out on revenue and credibility, while the creators of the app don’t get any of the hurt at all. To be fair, there are probably very few apps that get returned, and if a company makes one so horrendous that they actually go bankrupt because of refunds, well, they probably had it coming. What do you guys think: is Apple’s refund policy fair or unfair to vendors?

[via TechCrunch]

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