iPhone and iPad maker Apple has been forced to offer refunds for recently purchased apps and iBooks following a demand from the Taipei City Government.
The demand came as a part of the capital city's Consumer Protection Act, which urges businesses to offer refunds on recent purchases. The law allows the government to hit company's that fail to comply with the rules with heavy fines.
The decision by Apple to offer refunds comes after the city's Law and Regulations Committee named both Apple's App Store and Google's Android Market as working outside of the regulations.
The committee's chairman, Ching-Yuan Yeh went so far as to threaten the two tech giants with NT$1.5 million (£32,000) fine commenting:
"Based on the provisions of the Consumer Protection Act, mobile phone users are entitled to a seven-day period to test-use the software downloaded to their phones, and they can ask for a refund any time during this period."
The issue started after a confusion over the Super Cell Phone Tracker iPhone app. The app is advertised as a joke friend tracker. The issue regarding refunds arose when despite the disclaimer stating that the app is purely for novelty purposes and doesn't actually track other peoples mobiles, certain Taiwanese consumers still bought the app thinking it was real.
Since the confusion and calls for a change in policy, Apple has updated its Terms and Conditions to now offer refunds on apps and eBooks up to seven-days after purchase -- this includes the iPad and Mac App store.
Running contrary to Apple's approach, Google chose to contend the order in court, leading to a £21,000 fine against it in June.