Apple Provides Details on In-App Purchase Settlement Collection

Apple is readying its checkbook to refund some 23 million people involved in a 2011 class-action suit against the company for the "unlawful exploitation" of children via in-app purchases.

Parents whose kids downloaded less than $30 worth of content will be reimbursed with a $5 iTunes gift card or the equivalent of their total Game Currency charges. Cash refunds will be given to consumers who no longer have an active iTunes account, or whose bill exceeded $30.

The company emailed a detailed legal notice to all participants (published in full by 9to5Mac), with information about the settlement and deadlines for submitting payment requests: To claim a settlement benefit, class members must submit a valid Claim Form online or postmarked by Jan. 13, 2014; to opt out, send a request postmarked by Aug. 30.

Cupertino found itself in hot water in April 2011, when a Pennsylvania man sued the company after his 9-year-old daughter racked up about $200 in in-app purchases while playing games like Zombie Café, Treasure Story, and City Story. Unbeknownst to father Garen Meguerian, many of Apple's titles include in-game currency, which, at the time, could be purchased with a simple tap of the screen.

The Meguerians' purchases were made a month before Apple started requiring a password for in-app purchases, via its iOS 4.3 upgrade pushed out in March 2011.

Four other people filed similar suits around the same time, which were consolidated into one cast in June 2011. Early attempts by Apple to have the case tossed and to prevent the release of evidence were unsuccessful, eventually leading the two sides into mediation. They met on Oct. 23, 2012, and Jan. 17, 2013, and eventually reached a deal.

Despite the deal, Apple does not admit to any wrongdoing. "Apple denies all allegations and is entering into this settlement to avoid burdensome and costly litigation," the legal notice said. "The settlement is not an admission of wrongdoing."

The tech giant will refund the price of in-app purchases made by minors during an unspecified 45-day period; class members must attest that their children purchased the app content without their knowledge or permission. A list of all qualified in-app purchases, including Game Currency purchases, charged to users' accounts is available online.