Apple agreed to settle with the Federal Trade Commission over a loophole that allowed children to make in-app purchases without their parents' permission.
Under the terms of the settlement with the FTC, Apple must change its billing practices to ensure that it has obtained "express, informed consent from consumers before charging them for items sold in mobile apps," according to an FTC statement.
"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, in the statement. "You cannot charge consumers for purchases they did not authorize."
CEO Tim Cook says his company has already taken appropriate steps to close the loophole and that the FTC won't require any further changes to the purchase policy. Apple is refunding customers for some $32 million in unauthorized app purchases.