Apple has settled a complaint with the Federal Trade Commission over in-app purchases made by young children without the consent of their parents.

The company will refund $32.5 million to customers who claim children made the in-app purchases without their consent.

It will also change its billing procedures, which until now have allowed for 15 minutes of password-free purchases after each initial entry.

Apple CEO Tim Cook said in an email to employees:

"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 that take on a long and distracting legal fight."

The FTC said it had received "thousands" of complaints about unauthorised in-app purchases and that the decision was a victory for customers.

"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.

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  • Steve Jobs "Crazy Ones"

    This never before aired version of the "Crazy Ones" <a href="http://www.huffingtonpost.com/2011/10/06/steve-jobs-think-different_n_998003.html?ncid=edlinkusaolp00000003" target="_hplink">commercial is narrated by Steve Jobs</a>.

  • Henry Ford

    Print ad from 1981 foreshadowing Apple's use of famous historical figures in their 1990s "Think Different" campaign.

  • "A Is For Apple"

    Print ad from 1977, prior to the launch of Apple's Macintosh.

  • "1984"

    This now critically acclaimed commercial by Ridley Scott, which aired on January 22, 1984 during Super Bowl XVIII, was the world's introduction to the Apple Macintosh Personal Computer.

  • "Introducing Macintosh"

    Print ad from April 1984 explaining the inner workings of the Macintosh.

  • "Lemmings"

    This 1985 commercial was a less successful follow up to "1984." It first aired during Super Bowl XVIV

  • "The Computer For The Rest Of Us"

    "The computer for the rest of us" campaign of the late 1980s continued to build on Apple's brand "by portraying the Mac as embodying the values of righteous outsiderism and rebellion against injustice," <a href="http://www.wired.com/gadgets/mac/commentary/cultofmac/2002/12/56677" target="_hplink">wrote <em>Los Angeles Times</em> columnist Charles Pillar</a>.

  • "Who Needs A Computer Anyway?"

    Little known circa 1989 Apple campaign featuring cartoons from <em>The Simpsons</em> creator Matt Groening.

  • "What's On Your Powerbook?"

    This early 1990s campaign continued to emphasize individuality by having seeming opposites in the same ad both using a Powerbook.

  • "Crazy Ones"

    This ad featuring narration from actor Richard Dreyfuss first aired in 1997 in conjunction with Apple's "Think Different" print campaign.

  • "Think Different"

    This campaign launched September 28th, 1997 and featured photos of visionaries, thinkers, leaders, artists and inventors including Albert Einstein, Bob Dylan, Martin Luther King, Jr., John Lennon, Martha Graham, Muhammad Ali, Alfred Hitchcock, Mahatma Gandhi, Jim Henson, Maria Callas, Picasso and others.

  • iMac Colors

    iMac print ad from the late 1990s.

  • "Switch"

    This campaign launched June 10th, 2002 intended to get people to "switch" to Apple by featuring a series of "real people" explaining they preferred their Mac over PCs.

  • "Get A Mac"

    This is the first ad from the now famous "Get a Mac" campaign. <a href="http://www.adweek.com/adfreak/apples-get-mac-complete-campaign-130552?page=1" target="_hplink">It first aired in May 2006.</a>

  • "Thanks A Billion"

    iPhone print ad from 2009.

  • "Get A Mac"

    A "Get A Mac" spot from October 2009.

  • "Facetime"

    This commercial from 2010 accompanied the launch of iPhone 4 and Facetime, allowing users to video chat from practically anywhere.