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Apple is covering the tab for a lot of Smurfberries and other fanciful virtual goods purchased by young children.
The iPhone maker settled a lawsuit that could cost it more than $100 million if 23 million iTunes users, who are set to receive notice of the deal, file electronic claims — and become eligible for the $5 credit outlined in the agreement.
It took some kids as young as 3 1/2 years old just minutes to rack up hundreds of dollars in iTunes bills by buying virtual goods from games that were free to download but offered virtual goods for purchase — without parental approval, according to the lawsuit.
Separately, Apple Chief Executive Tim Cook will face a potentially hostile shareholder meeting today as the stock has dipped about 16 percent this year and activist David Einhorn presses the company to return some of its $137 billion in cash to investors.
Meanwhile, the settlement, which may seem paltry to some, would take Apple’s iTunes business less than three days to recoup — as it rakes in more than $40 million daily.
Last quarter, Apple’s iTunes business took in $3.7 billion in revenue.
Children, playing games on their parents’ iPads, iPods and iPhones, jumped at the offer to add virtual goods — such as Smurfberries and pet food — to their accounts without knowing the cost.
In one instance, Texas parents received notice through their iTunes account that their preschool-age son bought $100 worth of virtual coins through the game “Tap Zoo.”
Those parents and several others who were named in the class action lawsuit will get $1,500 as lead plaintiffs.
Since the 2011 lawsuit was filed, Apple put in safeguards to make it harder for children to click “buy.”
Still, people who could prove their children unwittingly racked up charges within a certain time frame are eligible for refunds, and claims greater than $30 could be returned in cash.