Apple to hand out iTunes credits in settlement
SAN JOSE, California (AP) - Apple has agreed to give more than US$100 million (S$124 million) in iTunes store credits to settle a lawsuit alleging that the iPhone and iPad maker improperly charged kids for playing games on their mobile devices.
The two-year-old case centres on allegations that Apple didn't create adequate parental controls to prevent children from buying extra features while playing free games on iPhones and iPads in 2010 and 2011. Parents who filed the lawsuit in 2011 said they didn't realise their children were racking up the charges until they received bills or other notifications after the purchases were made. The games that had been downloaded were designed for kids as young as four years old, according to the lawsuit.
Apple introduced more stringent controls governing in-game purchases as part of a March 2011 update to the software that runs its mobile devices.
Under an agreement filed in federal court last week, Apple has agreed to award an iTunes credit of US$5 to each of the estimated 23 million accountholders who may have been affected. Parents could receive more if they can show their bills exceeded US$5.