Now I have to cancel my credit card to prevent this from happening again.
Rubbish!! Just switch "In-App Purchases" off on your phone, and make sure the firmware is up to date.
this is clearly a system designed to mislead an unknowing customer.
The information is there if you bother to read it. Do you expect Apple to personally call you up on the phone or visit you to show you how to read instructions and turn on options in your device? Come on, take some responsibility for your in-actions. You are an adult.
If you are giving an expensive electronic device with internet access to a child to play with, it is your responsibility to make sure they are unable to do something they shouldn't if you are not supervising them. Presumably, you wouldn't want your 6-year old opening up Safari and inadvertently navigating to adult sites either?
Do you have the slightest idea on the kind of games a 6-year old kid of today wants to play?
Yes, I do. I have turned off "In-App purchases" on both my iPhone and iPad, so that such purchases cannot be made on my devices. I also supervise the kids (both younger and older than yours) who play on my iDevices.
And please don't give me the crap of me not updating my firmware..
If your firmware was up to date, there would be even more protections in place for people who don't bother to spend a few minutes reading instructions or set-up restrictions. Again, it's your device and your responsibility to keep up-to-date with it. Apple provides the means to protect against unwanted purchases - it is up to you to use them.