Apple will pay at least $32.5 million in refunds to parents whose children made unauthorized purchases on iPhones and iPads in a settlement with the Federal Trade Commission announced this week. The Washington Post said the settlement is the first major punishment handed to a major technology company over the handling of children's applications.
Parents began complaining several years ago when they discovered charges on their credit cards -- some for thousands of dollars -- resulting from their children's use of such games as Tap Pet Hotel and Smurf's Village, according to The Washington Post story. The FTC said Apple deceived consumers by allowing unlimited in-app purchases for 15-minute periods without informing anyone and didn't provide enough safeguards for the games.
Under the settlement Apple must refund all unauthorized payments to customers, with $32.5 million set as the minimum total.