16/01/2014 04:14 GMT | Updated 25/01/2014 16:01 GMT

Apple To Revise In-App Purchases After FTC Settlement

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.