Apple In-App Purchase Class Action Settlement Awards Go Out

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Some Apple customers saw a little extra money in their iTunes account thanks to a class action settlement that was reached last year. Apple customers have reported receiving a $5 iTunes Store credit in their accounts.

Several iTunes class action lawsuits were filed in the wake of an FTC investigation into game developers’ practice of advertising “free” games for children while charging high prices for in-app purchases of “Gaming Currency” without adequately warning parents or requiring a password to make the purchase. Apple agreed to a class action settlement, which was preliminarily approved on May 7, 2013.

The FTC said that it had received tens of thousands of complaints from parents who said their children were able to make in-app purchases of virtual items without their parents’ permission, even if the app was password-protected. Some parents reported that they were billed for hundreds, if not thousands, of dollars in unauthorized in-app purchases made by their children.

Class Members of the iTunes class action settlement include U.S. residents who, prior to May 2, 2013, paid for an in-app purchase of game currency in a Qualified App charged to their iTunes account by a minor without their knowledge or permission. Class Members had the option to choose between a $5 iTunes Store credit or a credit equal to the total amount of game currency that a minor charged to their iTunes account within a single 45 day period.

Class Members also had the option to receive a cash refund in lieu of an iTunes Store credit if they no longer have an active iTunes account or if their claims exceed $30 in total.

The Apple iTunes class action settlement is the second major settlement related to in-app purchases made by minors. In January, the FTC announced that Apple agreed to pay at least $32.5 million to consumers whose children made in-app purchases without their parents’ consent. Under the terms of the FTC iTunes settlement, Apple will pay full refunds to consumers who were billed for in-app charges that were incurred by minors and were not authorized by the consumer. The FTC iTunes settlement also requires Apple to modify its billing practices to ensure that it receives consumers’ express consent prior to billing them for in-app charges.

Last month, Apple iTunes customers received emails with instructions on how to request a refund for unauthorized in-app purchases made by minors. “We’ve heard from some customers that it was too easy for their kids to make in-app purchases,” the email read. “As a result, we’ve improved controls for parents so they can better manage their children’s purchases, or restrict them entirely. Additionally, we are offering refunds in certain cases.”

The deadline to file a claim for the iTunes in-app purchase settlement was Jan. 13, 2014. The claim filing deadline for the FTC iTunes settlement was April 15, 2014.

The Apple iTunes In-App Purchase Class Action Lawsuit is In re: Apple In-App Purchase Litigation, Case No. 5:11-cv-01758-EJD, in the U.S. District court for the Northern District of California, San Jose Division.