Apple is to pay compensation to US-based parents whose children made in-app purchases without parental knowledge.
As many as 23 million people may be eligible for compensation, putting the total potential payouts by Apple at over US$100 million.
The proposal – which remains to be approved by a US District Court – would give all parents who claim their children made purchases on apps downloaded via the Apple app store without their knowledge 180 days to forward their claim in excess of US$30 to the company.
They can also register their details to receive a US$5 iTunes card or cash by way of compensation.
The suggestion by Apple comes following a number of suits against the company by parents claiming not to have known their children were able to make purchases online without their permission.
Directly prompting the compensation settlement offer, a case initiated by Garen Meguerian in 2011 claims that Meguerian’s nine-year-old daughter spent over US$200 on so-called “Game Currency”- the case later combined with a further four similar parental actions against Apple.
The five parents who initiated the legal cases have been offered an additional one-off $1,500 payment. They have accepted the settlement offer.
Mobile operating systems preceding iOS 4.3 allowed users to make unlimited purchases within an app – for example, for buying app currencies or tools – for the 15 minutes following a single entry of a password.
Apple received a cut of all purchases made via third-party apps offered on the app store.
It is unclear whether Apple will extend the offer of compensation to parents outside of the US.
