Apple to offer iTunes credits and cash payments over in-app purchases

26 Feb 2013

Apple has agreed to settle a lawsuit over the unauthorised use of in-app purchases by children after their parents claimed that they ran up these charges without their permission.

The class action lawsuit stems from a 2011 case against Apple brought by parents who claimed that their children purchased virtual items and currency in free iOS games without their permission.

According to a report on GigaOm, Apple has agreed to settle the lawsuit over ‘bait apps’ – games that can be downloaded for free but then charge for in-app purchases, such as virtual goods or virtual play money.

GigaOm reports that Apple will offer a US$5 iTunes credit to people who claim that a minor purchased in-game items without their permission or knowledge, or a cash refund if the amount was more than US$30.

The proposed settlement was first reported by Law360, which said Apple will give notice to more than 23m iTunes account holders who made a ‘game currency’ purchase in one or more apps.

According to GigaOm, Apple users will have to provide evidence that the user did not provide a minor with the Apple password before they purchased game currency.

Carmel Doyle was a long-time reporter with Silicon Republic