Peter, you'll have to explain that one. We do try to keep up :)
Not sure how these companies hope to get away with claiming the money. Assuming the niece is under 18, the company cannot claim anything from her or her parents unless what she has ordered is a "necessity", such as food for her survival. Can't see that dragon games fall into that category. And they are on very sticky ground if they claim that she was an agent for her parent or that the parent undertook to indemnify them or that they are liable for things that they did not know of or that , in permitting her to use a password, they are liable for all she does.