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Apple to pay back Parents $100M from kids’ in-app spending galore

Reports are pouring in about Apple (maker of the iPhone 5) paying back $100M to parents whose kids went on unauthorized spending galore in game apps, this is part of their class-action settlement. kid-ipad_1

According to the said settlement terms, parents who claims that their kids ran up unauthorized charges of $30 or less will get $5 worth of iTunes Store credit or $5 cash (if they do not have an iTunes account). For those parents who claim unauthorized charges over $30, they must submit the date and amount of each purchase. All claims (regardless of the amount) must be submitted through a special “Apple In-App Purchase Litigation” website.

It was in 2011 when parents’ anger towards unauthorized purchases came out when the Washington Post documented multiple instances when children uses their parents’ iPhone or iPad apps to buy imaginary goods and services from Smurfs Village and other interactive game provider.

In a highly-publicized example, an 8 year old girl managed to buy “Smurfberries” (within the app Smurf Village) worth $1,400. Because of this, the maker of the iPad Mini subsequently implemented policy changes designed to make it hard for children to accrue such charges without their parents’ consent.

Back in 2011, a class-action suit was filed, as parents’ were seeking restitution for incurred charges they did not approved.

Under this settlement, any US citizen is eligible for award, provided that prior to May 2, 2013, they incurred, using a qualified app, a charge to their iTunes account made by a minor acting without their permission. Claims must be submitted on or before August 30, 2013.

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