Some of you seem to be confused about this part "According to Ghera, Microsoft makes it too easy for his son to make purchases: "He didn't realise it was costing real money."" Mr. Ghera is referring to his son not knowing it was costing real money. He may be asking for a refund but it also states he just wants an apology and a fix to the system so its easier to stop online purchases by kids, like some of you have mentioned with Steam. I have a PS3 my uncle has a Xbox, neither of us use CC info on our consoles, it's much easier to just go to say Walmart, Target, Toys R Us (insert your favorite/local retailer/e-tailer here), buy a card with points and use that.
Some of you blame the father for not checking his balance on his CC but the truth is most people dont even look at their bills they just pay the balance. Many companies have been found to add charges and the person just looks at their balance and pays. Sure it's the father's responsibility to check his balance and finances monthly, but he's just doing what a lot of people do. Atleast he's not suing MS.
He could have taken the time to explain to his son about money when he bought the account, explained that points cost money. Excellent chance for parenting skill boost there. Or he could have bought a card from a local retailer for the Xbox live membership and then used Xbox Live point cards as a reward/incentive for doing things such as chores or getting good grades. He should have also been paying more attention to what his son was playing. In my youth (late 70's to mid 80's) I got an allowance from my dad for doing chores, and getting good grades, wasn't much but was nice to get. Nothing was ever handed to me if I wanted something, then I had to work for it.
I don't know how easy it is to make purchases with CC info on a console, but if it's as easy as pushing a button then it need to be changed to something a lil more secure, or at least put in a popup that gives a brief explanation and options for the CC info then takes you to the parental controls when the "next" button is pressed.
I'm not saying that the father is right here, he did screw up by not checking his finances like he should have, he also missed a chance to hone his parenting skills. MS is also not at fault, but they could (with my limited understanding of their parental controls/CC options) make it a lil clearer for less tech savvy people. But then again many people don't even read the TOS/EULA or any other documentation.
This reminds me of the article about the kid who bought a military jet fighter online a while back.