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App Store Sees Growing Pains Over Refund, Payment Concerns
Thursday, March 26th, 2009 at 9:26 AM - by .(JavaScript must be enabled to view this email address)
Some developers are growing frustrated with Apple because of payment delays and a contract clause regarding consumer refunds. TechCrunch pointed to an iPhone developers forum where numerous developers are complaining about late payments for January sales.
Developers also receive monthly financial reports, but TechCrunch quoted from a February email from Apple that said reports for that month will be delayed "due to system enhancements." Developers who have tried to contact the company have been frustrated by unanswered emails and excessive hold times by customer service representatives.
TechCrunch said: "We've heard from one developer that he's yet to have received the February report and its nearly April. To make matters worse, another iPhone developer says that even after receiving the report of how much he should be paid, he was grossly underpaid by Apple, by nearly $10,000."
Regarding app refunds, TechCrunch, CNET, and other sites are claiming that developers could be bankrupt by a contract clause that forces them to refund the full purchase price of an app to an unhappy consumer, including the 30 percent that Apple keeps for itself. However, on that aforementioned iPhone developers forum, someone recently said: "This has already been discussed in another thread on these forums, and people have pointed out the new agreement isn't any different from the old agreement. This has always been in there, but Apple doesn't just about ever give refunds, so it's a non-issue. Nothing has changed."
So far, there's no evidence that Apple has given widespread refunds that are causing any developer financial difficulties, let alone the prospect of filing for bankruptcy.
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