The issue focused on the fact that many people do not know how to use a mobile app without paying for it — even though the app's terms of service require them to provide a valid credit card number, according to federal court records.

The lawsuit was brought by the Consumer Financial Protection Bureau, a division of the Justice Department. The bureau's suit seeks to hold the company and the mobile apps maker liable for consumers' claims of fraud.

"This settlement allows the government to take an aggressive step to