Elsewhere, the Government Minister had some strong words of criticism
for Apple. "I'll tell you a story I probably shouldn't tell you," he
told Eurogamer. "I downloaded Smurf's Village for free on the iPad for
my kids, who are four and two, because I wanted to get them used to
playing games. And the first thing they did was bought a Wagon of
Smurf for £59.99.

"There's no password protection," he added. "I think Apple might just
warn people who are downloading a game for a four-year-old that it
includes in-app purchases without password protection."

http://www.eurogamer.net/articles/2011-01-14-mps-show-support-for-gaming

There is passwd protection, but the ipad caches it for 15 minutes. So parents enter their passwd to install a free game, hand the ipad to the kids, kid immediately does two taps to buy some dumb trinket, parent is billed $99.

I shall turn off in-app purchases!