Apple to refund US$32.5m for kids' app purchases

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Apple has agreed to refund at least US$32.5 million to US customers for children's purchases from its online App Store without parental consent, US regulators said on Wednesday.

The Federal Trade Commission said Apple also agreed to modify its practice - which until now had allowed children to make purchases on an iPhone or iPad 15 minutes after a password was entered.

FTC chairwoman Edith Ramirez said Apple failed to inform parents of the 15-minute window that could allow children to make purchases ranging from one dollar to US$100 for each app.

Ramirez told reporters that because of the loophole, "children ran up millions of dollars in charges without their parents' knowledge and consent," a violation of federal rules.

Apple chief executive Tim Cook, in a letter to employees obtained and posted by the website 9to5mac, said the company has already been following the practices requested by the US regulators.

In addition, he said the company sent emails to 28 million App Store customers offering refunds and that "when some emails bounced, we mailed the parents postcards."

"... We received 37,000 claims and we will be reimbursing each one as promised," Cook said in the memo.