Apple to settle lawsuit on inadvertent app purchases by kids

Tue Feb 26, 2013 12:55pm IST

The Apple logo is pictured at the company's flagship retail store in San Francisco, California January 23, 2013. REUTERS/Robert Galbraith/Files

The Apple logo is pictured at the company's flagship retail store in San Francisco, California January 23, 2013.

Credit: Reuters/Robert Galbraith/Files

Related Topics

Stocks

   

REUTERS - Apple Inc(AAPL.O) has agreed to settle a class action lawsuit that said customers were charged when their children inadvertently downloaded certain applications from the company's online store, a court filing showed.

Under the proposed settlement, Apple could potentially end up paying around $100 million as it has agreed to provide a $5 iTunes store credit to as many as 23 million affected customers, the court filing said. The final settlement figure may vary.

Also, those claiming $30 or more from Apple may choose to receive a cash refund instead of an iTunes store credit, according to the filing.

The lawsuit, filed by five parents in 2011, involved allegations surrounding purchases in certain downloaded apps, which plaintiffs claim were made by children without the knowledge or permission of the account holder.

The lawsuit also alleged that "Apple failed to adequately disclose that third-party Game Apps, largely available for free and rated as containing content suitable for children, contained the ability to make In-App Purchases."

The proposed settlement requires court approval. The court will hear the settlement on March 1.

Apple could not immediately be reached for comment by Reuters outside of regular U.S. business hours.

The case is in re: Apple In-App purchase litigation, Case No. 11-01758, U.S. District Court, Northern District of California. (Reporting by Sakthi Prasad in Bangalore; Editing by Mark Potter)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

TECH WRAP

Reuters Showcase

RK Laxman Dead

RK Laxman Dead

'Common Man' cartoonist RK Laxman dead at 93  Full Article 

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

U.S. Blizzard

U.S. Blizzard

Northeast U.S. braves 'crippling' blizzard, transit systems shut.  Full Article 

No Layoffs

No Layoffs

IBM dismisses Forbes report of massive layoffs.  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

Spielberg Speaks

Spielberg Speaks

Spielberg: 70 years after Holocaust Jews still face anti-Semitism.  Full Article 

Photo

Australian Open

Sharapova schools Bouchard to advance in Melbourne   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage