iPad App Store

Apple has agreed to refund a total of £20m customers for 'unfair' in-app purchases on iPhone and iPad.

The technology giant has reached an agreement with the US Federal Trade Commission (FTC) following a complaint the many apps aimed at children contained virtual goods and chargeable items. According to 9to5Mac, Apple has been negotiating with the FTC for months on the matter.

Offending apps include Tap Pet Hotel, Dragon Story and Tiny Zoo Friends. As part of the settlement Apple is being forced to make clearer warning to customers about in-app purchases. See also: Apple iPad Mini vs Google Nexus 7 vs Samsung Galaxy Note 8.0 comparison review.

Tim Cook, CEO of Apple said in an internal email: "It doesn’t feel right for the FTC to sue over a case that had already been settled. 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."

Cook also said that last year the firm set out to refund any in-app purchases which were made without a parent's permission. This resulted in emailing 28 million App Store customers and if the emails bounced, a postcard was sent. Apple received a total of 37,000 claims and reimbursed every one.

The news comes shortly after Apple announced that customers spent more than $10bn in the App Store during 2013 with three billion apps being downloaded in December making it the most successful month in history.

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