Apple agreed to settle with the Federal Trade Commission over a loophole that allowed children to make in-app purchases without their parents' permission.
Under the terms of the settlement with the FTC, Apple must change its billing practices to ensure that it has obtained "express, informed consent from consumers before charging them for items sold in mobile apps," according to an FTC statement.
"This settlement is a victory for consumers harmed by Apple's unfair billing, and a signal to the business community: whether you're doing business in the mobile arena or the mall down the street, fundamental consumer protections apply," said FTC Chairwoman Edith Ramirez, in the statement. "You cannot charge consumers for purchases they did not authorize."
CEO Tim Cook says his company has already taken appropriate steps to close the loophole and that the FTC won't require any further changes to the purchase policy. Apple is refunding customers for some $32 million in unauthorized app purchases.
A child plays an app game on an iPod Touch.Melina Mara | The Washington Post | Getty Images
"It doesn't feel right for the FTC to sue over a case that had already been settled," Cook wrote in a letter to Apple employees. "To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything we weren't already going to do, so we decided to accept it rather than take on a long and distracting legal fight."