Apple settles in-app purchasing class action, agrees to pay $5 iTunes credit or cash refund

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Last time we checked in on the in-app purchase class-action lawsuit against Apple, courts refused Apple’s request to throw out the case brought on by parents arguing the iOS freemium model, i.e. in-app purchases, allowed children to easily rack up hundreds or thousands of dollars. Today, Law360 (via GigaOM) reported Apple has agreed to pay a settlement and will be contacting 23 million iTunes users that “made a Game Currency purchase in one or more Qualified Apps.”

According to the report, Apple will pay $5 in iTunes credit to those who claim in-app content was purchased by a minor without their permission. For purchases above $30, users will be able to request a full refund. However, credits will likely not get to users until early 2014 when the settlement meets regulatory approval:

The settlement still must receive preliminary approval from a federal judge. If that occurs, which it typically does in class action cases, the notification period will begin and Apple will begin accepting claims. After the claims are in, a judge will approve the final settlement and Apple will begin making payments — this would likely occur late this year or in early 2014.

The in-app purchasing case was the subject of the Daily Show segment above that features the game “Tap Fish”. Apple didn’t specify which apps, or specific iTunes account holders, would be eligible for the refund. Apps nowadays require a password before completing an in-app purchase, but iOS previously provided a 15-minute window after users entered their password, which subsequently allowed any in-app purchases within the time frame to complete without needing the password again.