Apple agrees to settle class action over in-app purchases aimed at kids

Pink Ipod MusicApple has agreed to settle a class action lawsuit filed against the company over in-app purchases (IAPs).  Specifically, the lawsuit pointed to the relative ease with which children were able to carry out extravagant IAPs especially in so-called “bait apps” like the infamous Smurf’s Village. The lawsuit claimed that users younger than 13 could purchase game content via IAPs, that minors could open their own App Store accounts, and that minors could easily use their parents’ accounts.  Now, Apple apparently has assented to a proposed settlement that entitles every aggrieved parent with at least $5 in iTunes credit.

According to GigaOm:

Under the terms of the settlement, Apple will offer a $5 iTunes credit to those who claim that a minor bought in-game items without their knowledge or permission. If the amount in question is more than $5, Apple will offer a credit for that amount. If the amount in question is over $30, an Apple user can claim a cash refund.

As yet, the number of eligible users is unknown. But to be eligible for payment in recompense for the IAP ploys, users must first “attest that a minor bought ‘game currency’ and that the user did not provide the minor with the Apple password.”

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.


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