Apple attempted to slap a gagging order on a Liverpool father who sought a refund after his 11-year-old daughter's iPod Touch overheated and melted.
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The firm said it would offer the family a full refund only if they were willing to sign a settlement form, according to The Times.
The proposed agreement attempted to prevent the family from ever disclosing the terms of the settlement.
Ken Stanborough said he asked Apple for a refund, but the firm denied liability and offered a refund in return for an agreement to keep the matter quiet.
A letter from Apple said that any breach of confidentiality "may result in Apple seeking injunctive relief, damages and legal costs against the defaulting persons or parties", he said.
An Apple spokesman said the firm had not looked at the Stanboroughs' damaged iPod and could therefore not comment.
Apple has tried to keep quiet a number of cases where its iPod music players had overheated and even burned their owners.
The US Consumer Product Safety Commission provided 800 pages of documentation on the cases in response to a Freedom of Information Act request.
The commission's investigators said that the iPods' lithium ion batteries could be the source of the problem.