Parents who have been shocked to find their children have run up massive bills – some of up to $1,400 – by making "in-app purchases" on their Apple iPhone or iPad will get cash or an iTunes Store credit as part of a settlement that could cost the company up to $100m (£66m).
The move would settle a lawsuit filed in 2011 by five parents in California who complained that Apple hadn't made it clear that "free" appsdownloaded from the App Store could also include paid-for extras, which wouldn't necessarily require the child to provide the parent's Store password. As many as 23 million people could receive compensation, the settlement document suggests.
The lawsuit alleged that "Apple failed to adequately disclose that third-party game apps, largely available for free and rated as containing content suitable for children, contained the ability to make in-app purchases."
Now the company is offering a settlement – agreed by the plaintiffs – in which people who can show that a minor made an in-app purchase (IAP) can claim either iTunes Store credits, or cash settlements in cases where parents say the cost of purchases exceeded $30. The settlement is understood to apply only to the US.
In February 2011, the US federal trade commission said it was launching an inquiry into IAPs because of concerns that children were playing games: one game that came in for particularly criticism was Capcom's game Smurfs' Village, in which children were encouraged to buy $99 barrels of Smurfberries – which really did cost $99 to parents with the account.
Source: The Guardian
