New Apple Rules Will Allow Apps to Charge More Money Without Asking
As long as they are following a very specific set of rules.
According to an update to Apple’s rules, apps with subscription services will now be able to charge more money to customers without asking their consent or permission. In a news release by the company on May 16, it was mentioned that it ‘continues to set the bar in making it easy and transparent for subscribers to view, cancel, or manage their subscriptions.’
New Apple rules
Before this update, users usually had the liberty to opt-in to a subscription renewal for apps if the developer increased the price, but now that won’t be the case. Developers will now have the power to offer a renewal with a price increase ‘without the user needing to take action.’
Apple explained the reason for this update. The company stated that the opt-in system has left some customers having their services ‘unintentionally interrupted’ because they ‘must take steps to resubscribe within the app.’
Apple also made it clear that the auto-renewal with price increases in apps will only occur under specific conditions and the customers need to be notified of it beforehand. The customers can be notified via email, push notifications, and in-app messaging services. The auto-renewal will also only be allowed if the price increase doesn’t occur more than once every year and ‘doesn’t exceed $5 and 50% of the subscription price, or $50 and 50% for an annual subscription price’, and the increase is permissible by local law.
On the Apple Store Connect Help page, it’s written that the permission must be granted if the price increase in apps is- “More than 50% of the current price; and the difference in price exceeds approximately $5 United States Dollar (USD) per period for non-annual subscriptions or USD 50 per year for annual subscriptions.”
According to these words, the apps would make need to meet both increase conditions for permission to be required. Apple assures that if the developer meets these conditions, it will always notify users in advance. It will also explain how users can ‘view, manage, and cancel subscriptions if preferred.’ A user who chooses not to opt-in to the new price in cases where permission is needed will not have their subscription renewed at the next billing period. Such a customer will get the opportunity to resubscribe within the app. The changes are likely to happen all over the world, including Australia.
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