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Apple reaches settlement with parents over in-app purchases

Parents whose children purchased in-app items for real money without them knowing are going to receive compensation from Apple. As reported by GigaOM, the company has reached a settlement today in a class action lawsuit filed against it in 2011, and will issue a US$5 iTunes gift card to those who make a claim. If the claim is for more than $5, Apple will add a credit to the person's account, while claims over $30 will be paid in cash.

The suit was originally brought against Apple by a Pennsylvania man named Garen Meguerian, whose daughter racked up more than $200 in in-app purchases without his knowledge. For its part, Apple sought to limit such purchases by requiring an account password to be entered for each IAP. In the suit, Meguerian suggested that a second, different password be required for IAPs.

Under the proposed settlement, those seeking to receive payment from Apple will have their iTunes purchase histories reviewed to ensure that the purchases were actually made, and must attest that their children made the purchases without their knowledge and without being given the account password. The settlement is currently awaiting approval by a federal judge.

[Via Apple Insider]

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