FTC Looking Into In-App Purchasing
Posted 02/22/2011 at 8:57pm
| by Matthew Tilmann
In the wake of hefty bills for all things Smurf, The Washington Post is reporting that the FTC has taken it upon itself to review the practice of "in-app purchases" for various apps on iPhones, iPads and iPods. The concern is that customers do not fully comprehend the fact that they're actually charging their bank account.
Some parents feel that their children don't understand the difference between real and pretend purchases for items such as $0.99 barrels of Smurfberries on Capcom's Smurfs Village.
"We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases," wrote FTC Chairman Jon Leibowitz as part of a letter to Rep. Ed Markey (D-Mass.) "Let me assure you we will look closely at the current industry practice with respect to the marketing and delivery of these types of applications."
An FTC spokeswoman did acknowledge the letter, but opted not to comment any further.
"After the Washington Post first broke this story earlier this month, I sent the Federal Trade Commission a letter calling on the agency to investigate the issue of 'in-app' purchases and provide additional information about the promotion and delivery of these applications to consumers, especially with respect to children," Rep. Markey responds. "What may appear in these games to be virtual coins and prizes to children result in very real costs to parents. I am pleased that the FTC has responded, and as the use of mobile apps continues to increase, I will continue to actively monitor developments in this important area."
That said, where would you place the blame readers? The marketing practices of developers and perhaps Apple? Or the parents? Feel free to leave your thoughts below!
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