Apple has agreed to settle a lawsuit over 'bait apps' that allowed children to rack up huge iTunes bills on their parents account.
Parents of minor children argued that Apple's practice of distributing free apps was misleading because minor children could purchase "game currency" for a short duration after the parents had logged in. The children's games that use this model are known as 'bait apps'.
Apple has agreed to offer a $5 iTunes credit to those who claim that a minor bought in-game items without their knowledge or permission, reports GigaOm. If the amount being claimed is over than $5, Apple will credit that amount. If the amount is over $30, a cash refund can be claimed.
In order to collect under the settlement, Apple users will have to attest that a minor bought “game currency” and that the user did not provide the minor with the Apple password. The proposed settlement, first reported by Law360 (subscription required), does not state how much Apple will pay in total or how many users are affected. It does state that Apple will send an email notice to “over 23 million iTunes account holders who made a Game Currency purchase in one or more Qualified Apps.”
The settlement is still waiting for approval from a federal judge.