Apple to offer iTunes compensation for kids' app purchases

All fun and games 'til someone loses an iPad

Apple is apparently planning to offer iTunes compensation to parents whose children have racked up bills through in-app purchases

Apple is planning to offer compensation to unwitting parents after their kids ran up in-app charges on freemium iPhone and iPad games back in 2011.

Following a class action lawsuit in California, the deal on the table from Cupertino is $5 of iTunes credit for parents whose children spent money while using free apps. If the purchases ran higher than $5 and the parent's had no knowledge, then Apple will refund up to $30.

The deal will go out to 23 million iTunes accounts, although it still has to receive preliminary approval from a US judge before Apple can start accepting claims.

Even then, parents will have to fill in an online form and confirm they were charged without their knowledge by the app or game at the hands of their enterprising offspring. That means they didn't give their children their Apple password that could, on some apps such as Tap Fish, give you 15 minutes of pure financial freedom with in-app purchases.

Once the claims are in, a judge will approve the settlement and Apple can shell out - likely to happen towards the end of this year or early 2014.

We then expect a very swift update to the T&Cs to avoid this happening again.

Via: GigaOm