Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: March 15, 2013
The Firm
201-896-4100 info@sh-law.comApple Inc. has reportedly agreed to settle a class-action lawsuit over applications (apps) purchased through its online marketplace. Five parents sued the company after their children inadvertently made purchases in apps that purported to be free.
According to the plaintiffs’ complaint, “Apple failed to adequately disclose that third-party Game Apps, largely available for free and rated as containing content suitable for children, contained the ability to make In-App Purchases.”
Apple requires users to authenticate their accounts by entering a password prior to purchasing and/or downloading an app or buying game currency. However, up until early 2011, once the password was entered once, Apple permitted users to buy game currency for up to fifteen minutes without re-entering the password. As a result, the plaintiffs’ children racked up bills ranging from $99.99 to $338.72 at a time.
The case posed an interesting contract issue. As detailed in court documents, the plaintiffs maintained that each in-app purchase constituted a separate and voidable contract between Apple and their minor children, which could be subsequently disaffirmed by a parent or guardian on behalf of the minors. Under their theory, “a contract between Apple and minor existed each time that (1) Apple offered to sell game currency to a minor playing an app, (2) the minor accepted Apple’s offer, and (3) the transaction was supported by consideration, or payment made by the Plaintiffs.”
Meanwhile, Apple argued that the relevant contractual relationship governing the in-app purchases existed solely between Apple and plaintiffs. Citing the original Terms & Conditions signed by the plaintiffs, it contended that the purchases were not voidable. Moreover, Apple argued that the Terms & Condition specifically hold the account holder liable for any unauthorized purchases.
Since the case was settled, we will never know how the court would have ruled on these issues. Under the terms of the settlement, Apple will provide a $5 iTunes store credit to impacted customers, which could reach 23 million. In addition, class members claiming $30 or more from Apple may elect to receive a cash refund. Overall, the settlement is expected to cost Apple $100 million.
If you have any questions about this case or would like to the legal issues involved, please contact me, Christine Vanek, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich

Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher

For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!