Apple has lifted the lid on how its compensation system for parents of children who have made in-app purchases without their knowledge will work.

First proposed back in February, Apple's 'in-app purchase litigation administrator' has pushed out an email detailing the practicalities of the system, with settlement options for refund requests given in full.

Devil in the detail

The compensation system is the result of a settlement with five parents in California who filed a lawsuit against Apple in 2011 after their children spent huge sums of money on in-app purchases.

Apple claims it will be open to parents of kids who spent money in games with age ratings of 4+, 9+ or 12+ before 2 May 2013.

The Cupertino giant has set aside a total of $100 million to deal with claims, with those who file for charges under $30 set to receive a $5 iTunes gift card.

Claims made for figures above that mark, however, will receive a refund in the form of iTunes credit for the full amount - providing the costs were amassed within a single 45 day period.

In this case, if the claimant no longer has an iTunes account, a full cash refund will be offered instead.

No admission

Also of note is the fact that only US residents will be eligible for compensation, with the litigation administrator noting that refunds are only being offered as part of the aforementioned class action settlement.

"If your iTunes account was charged for an in-app purchase made by a minor in a game app without your knowledge or permission, you could be entitled to benefits under a class action settlement," details the administrator in the email, obtained by 9to5Mac.

"In a consolidated class action lawsuit pending against Apple, plaintiffs alleged that certain iOS applications distributed through the App Store allowed minors to charge iTunes accounts for in-app purchases of game currency without the account holders' knowledge or permission.

"Apple denies all allegations and is entering into this settlement to avoid burdensome and costly litigation. The settlement is not an admission of wrongdoing."

[source: 9to5Mac]