Apple settles lawsuit over minors making unwanted in-app purchases

A group of American parents won a minor victory over Apple yesterday, when the App Store platform holder agreed to settle a lawsuit over 'unwanted' payments made by the plaintiffs' children through in-app purchases.

The iPhone manufacturer will offer the complainants iTunes gift cards worth at least $5 (or cash equivalent). If a claimant's child unwittingly spent more than $30 on IAPs, though, the plaintiff can file for a full cash refund.

Though Apple had attempted to have the case dismissed, US District Judge Edward Davila decided the complaints were valid and that the case should be heard.

The parents who filed the lawsuit back in 2011 argued that Apple had failed to implement proper security measures to prevent children from buying in-game currency without the account holder's permission.

At the time these transactions occurred, the App Store did not prompt the user for a password for every purchase within a certain time limit (this measure was introduced in iOS 4.3).

In the settlement document, it is stated that parents who want to claim compensation must prove that a minor purchased in-game currency without being asked for a password.

Apple will be emailing "over 23 million iTunes account holders" who may be entitled to compensation.