Apple could pay out $100m to compensate parents whose children made inadvertent app purchases
Apple could potentially pay out $100 million to customers who were charged when their children inadvertently made in-app purchases from iTunes, court papers have revealed.
The company has agreed to compensate as many as 23 million affected customers, the court filing said. Parents will be eligible for a $5 iTunes store credit. If their bill was more than $5 they can claim up to $30 in vouchers. Customers are eligible for a cash refund for amounts over $30.
The lawsuit, filed by five parents in 2011, involved allegations surrounding purchases in certain downloaded apps, which parents claim were made by children without the knowledge or permission of the account holder.
The lawsuit also 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."
The proposed settlement requires court approval and the court will hear the settlement on 1 March. The final settlement amount may vary.
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