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Nate Halverson: So he basically says to me Now J. What Facebook did was it opened up its platform for outside companies to develop these games that are then loaded on Facebook so kids like Ian can play them. Nate Halverson: And so she says, well, load up the game on Facebook and, and show me what you did. Please continue. Nate Halverson: And the material that we got on sealed, it begins to give us clues as to how a child might spend thousands of dollars and you know it wasn't just documents that we got. Al Letson: For a kid who probably does not have that money, which means her parents have to come up with that money. Nate Halverson: He goes in, he gets on the computer, he loads up Facebook and he starts playing a game called Ninja Saga. And now there was this big tall stack of gold coins and nothing else popped up. Nate Halverson: And she doesn't see him spend any money. And the lead singer, who's a good buddy, gets down off stage and he sees me sitting there and he goes, "Hey Nate, you got to talk to this guy next to you, J. Nate Halverson: Ian could rack up hundreds of dollars without ever realizing it. I am remiss in my duties as a San Franciscan. But on Facebook-. Nate Halverson: Well, I mean, not all of the time, but generally, yeah, this is how Just being [inaudible ], people got great stories to tell. Like how does that work? Nate Halverson: And so, you know, I belly up to the bar. Nate Halverson: They began finding other people that it has happened to, and it was happening to a lot of folks. Our production manager is Mwende Hinojosa. Nate Halverson: And so she argued that it's especially important for the public to know about this stuff given the privacy troubles Facebook has gotten into recently. Nate Halverson: So Glynnis takes off, she goes and hangs out with some friends and doesn't think another thing about it until she gets back to the house. Nate Halverson: Here is where we learn that Facebook did a study and identified this problem all the way back in That's when they first noticed they're getting lots of refund requests from credit card companies trying to claw back money from Facebook. Nate Halverson: Oh Man. They want to know how much children were spending on these games, how much money they and their parents were trying to claw back from Facebook and they wanted to know when Facebook realized that this was a problem and what they did to try to stop it. And it's at this place called Cafe Du Nord, which is like literally an underground club where the doors open up and you descend these old Victorian staircase. And they turned it into a class action lawsuit. Now one of these Facebook employees says, "Would you refund this whale ticket? Glynnis B. And her credit card company said, well, we can refund the money for you, but you have to file a criminal complaint, essentially a criminal felony complaint against your son for spending nearly a thousand dollars without your permission. Nate Halverson: So Glynnis Bohannon's son Ian, he's 12 at the time, he's doing what all kids will do on a hot day, he's playing video games. Original score and sound design by Jim Briggs and Fernando Arruda. And when this child realized what she had done, she asked for a refund.

Edited by Taki Telonidis. And so he loads it up and he starts playing and he's playing the game. Then when you get to the bottom of the flight, this beautiful old bar opens up on your right and there's kind of a dilapidated stage. Parker: And that push back response says it is not our current policy to issue refunds in cases when charges click made by someone in your household or someone who big fish casino fb known to you.

Nate Halverson: I mean going through these documents for the first time, at least for me as a nerdy journalist, was like reading a thriller. Nate Halverson: So she goes and she logs back into the credit card account. So you sit down next to this guy J. I'm like, Ian Michael, what have you been doing with my credit card? Nate Halverson: Bill Richardson is in charge of all payments at Facebook. Nate Halverson: Which she's grounded for like until she's on Social Security. Al Letson: All right. If you get your work done, your schoolwork done, your chores done, your homework done, then you can have gaming time. Nate Halverson: Facebook has stored her credit card, and she's not used to this because every time Ian wanted to spend money on his x-box, she would have to go over and reenter her credit card. Nate Halverson: Glynnis's lawyers and Facebook's go back and forth and eventually decide to settle. It gets buried in a courthouse in San Jose and that's where it would have stayed. Bill Richardson: It is a discussion thread post which summarized a data analysis sheet-. Nate Halverson: So basically that means she asked the court to make that evidence public. So she didn't want to do that, and she realized that she probably wasn't the only one facing this. Nate Halverson: J. I was like, this is so wrong. Nate Halverson: Almost completely across the board. Al Letson: All right, so next time you go, I'm going with you. Emails, emails, emails, she tried to find a phone number to call them, she left voice messages for them, never heard back, never got a response. And then he started to play again. Al Letson: I don't play games on Facebook, so, does Facebook own these games? Parker, the same guy that I sat down and next to in that bar in San Francisco. I order a whiskey, and I'm sitting there sipping on it when the band goes to set break. You can trace it back to the British judicial system and I'm not going to go into that history right now, but these are really strong rights. And then the stack of coins got small, like two coins, and it would blink at him. Nate Halverson: We actually also got audio from the interviews that Glynnis's attorney J. Nate Halverson: So let me take you back to a fall day in Phoenix, Arizona back in It's like hot outside and this is like [inaudible] even an unusually hot day for Phoenix. It goes really far back in time. Nate Halverson: So first she tried to reach out to Facebook. Al Letson: Was she able to stop payment with the bank? But the Facebook employee and her supervisor actually joked about how the girl looks more like 13 in her picture, and then the supervisor just comes out and says it, "I wouldn't refund. I've got to get you down there to this club. What have you been doing with my card? It kept blinking, blinking, blinking at him, and then he hit it and it went [prrring] and shot up. The second thing is that all the information gathered in this case is sealed. What is all this? And he says to me, "Look, if you really want to understand how Facebook operates, I mean, if you want to understand the business ethics of this company, you got to look at this case I'm working on. Like what happened with her? But if you want to do something extra like get a magical sword for your Ninja or just like make it more powerful, to do that, he has to spend money. He's like, I don't have your card, mom. Nate Halverson: Well Al, to be honest, it was kind of a night like any other when I had gone out to see my buddy's band on Market Street in San Francisco. And so after we filed the brief, Facebook files their brief, we filed a response, Facebook files a response, the court does a review and Oh, I think it was two or three months later, the court came back and issued an order. Nate Halverson: So back in she reaches out to a lawyer. A whale of course is a term that the casino industry uses to describe a big spender, somebody that flies in on a private jet but this was a 15 year old girl. Nate Halverson: We got memos, strategies, employee emails, more than pages of stuff. There was one email exchange between two employees and they're referring to a child as a whale. Nate Halverson: Yeah, on the face of it, they're free. Two important things happen. I'm like, what is going on? So we got information. This place is great. Vicky B. So finally she reaches out to her credit card and she says, look, my son accidentally spent this money, we didn't realize it, it wasn't clear. Al Letson: And so what happens during that lawsuit? I don't know what you're talking about. Nate Halverson: So she goes and she logs onto her wells Fargo credit card account and she sees a string of charges. Nate Halverson: Totalling almost a thousand bucks. The first is that Facebook agrees to create an easier way for kids and parents to ask for refunds, but they don't actually force developers to stop doing what they've been doing. Nate Halverson: Well, J. Nate Halverson: No.