Before March 2011, Apple’s policy allowed in-app purchases to be made in newly downloaded apps for 15 minutes without having to enter a password. After parents complained that some children were accumulating hundreds of dollars in charges during that short time frame without permission, Apple changed their policy to require a password for every in-app purchase made.

Just over a month ago, Apple settled with parents who sued the company for making it too easy for kids to spend money in apps without parental authorization.

Many parents have been shocked to see up to $300 in-app purchase expenses on their credit card bills as a result of the old policy. To make amends, Apple is agreeing to give qualifying customers $5 iTunes credit or cash.

Apple is striving to have a policy that will protect their customers, but parents should be doing their part as well. Set clear rules for your family about using apps on mobile devices and making in-app purchases. Also, don’t give device passwords to your children. It may seem like a hassle, but it’s better to keep the control in your hands so your kids don’t—accidentally or otherwise—spend your money without you knowing about it.

For Android users, Net Nanny offers App Manager which gives you control of apps on your child’s device and even lets you block in-app purchases.

I work for Net Nanny and all opinions are my own.