Apple to Hand Out iTunes Credits in Settlement

1:34 PM, Feb 26, 2013   |    comments
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SAN JOSE, Calif. (AP) - 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 federal 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.

Apple Inc. has agreed to award an iTunes credit of $5 to each of the estimated 23 million accountholders who may have been affected. Parents could receive more if they can show their bills exceeded $5. If the charges exceeded $30, cash refunds will be offered.

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

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