The Federal Trade Commission announced Wednesday Apple agreed to refund $32.5 million to consumers.
The settlement comes after the FTC received tens of thousands of complaints about in-app charges made by children while playing mobile app games.
Some parents were stuck with bills for thousands of dollars, according to the FTC.
The FTC said Apple did not inform account holders their password would open a 15-minute window when children could make unlimited charges inside the games.
Apple is required to change its billing practices and let consumers know the refund is available.
It is also required to make the refunds "promptly" and let consumers know the money is available, as well as how they can get it.