Apple settles suit after kids racked up fees

Apple has agreed to give more than $100

Apple has agreed to give more than $100 million in iTunes store credits to settle a lawsuit alleging that the company improperly charged kids for playing games on their mobile devices. (Oct. 12, 2012) (Credit: AP)

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Apple has agreed to give more than $100 million in iTunes store credits to settle a lawsuit alleging that the iPhone and iPad maker improperly charged kids for playing games on their mobile devices.

The case centers on allegations that Apple didn't create adequate parental controls to prevent children from buying extra features while playing free games on iPhones and iPads in 2010 and 2011. Parents who filed the lawsuit in 2011 said they didn't realize their children were racking up charges until they received bills or other notifications after the purchases were made.

Apple introduced more stringent controls governing in-game purchases as part of a March 2011 update to software that runs its mobile devices.

Under an agreement filed in federal court last week, Apple has agreed to award an iTunes credit of $5 to each of the estimated 23 million account holders who may have been affected. Parents could receive more if they can show their bills exceeded $5. Apple, which is based in Cupertino, Calif., declined to comment Tuesday.

A hearing on the proposed settlement is scheduled Friday in San Jose, Calif.

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