Apple settles with parents of children who made in-app purchases

Apple reached a settlement of a class action suit that involved children making real money in-app purchases without understanding the expenses involved. The case originally revolved around a child in Pennsylvania who spend approximately $200 to make in-app purchases to help keep virtual fish alive in a video game. The name of the game involved is called "Tap Fish". While Apple does require a password for the IAP, the father who brought the suit, Garen Meguerian, suggested in his filing that Apple require a different password for in-app purchases than the one used to purchase an app from the App Store.

Apple will give those making claims as part of the class, a $5 credit for iTunes. If the amount that is claimed to have been spent by a minor without permission exceeds $5, Apple will issue a credit for that amount. Claims of more than $30 will be paid in cash. Those filing a claim must prove that a minor purchased the "game currency" and did not receive the password from the adult owner of the Apple device used to make the purchase.

A federal judge will still need to make a preliminary approval of the settlement. Once that takes place, Apple will send out a notification and start accepting claims. Once the deadline to file a claim is over, a judge will make the final approval and the payouts will begin. That probably won't happen until later this year or early next year. Meanwhile, feel free to checkout the settlement papers below along with an appearance of Tap Fish on The Daily Show.

source: TheDailyShow, Scribd via TUAW