FTC to review In-App Purchase-based applications | iLounge News

News

FTC to review In-App Purchase-based applications

The U.S. Federal Trade Commission (FTC) has said that it will review the marketing and delivery of certain applications built around In-App Purchases. Citing a letter from FTC Chairman Jon Leibowitz to Rep. Ed Markey of Massachusetts, the Washington Post reports that the FTC feels “in-app purchases” in certain applications have raised doubts as to whether consumers fully understand the ramifications of such charges. “We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases,” Leibowitz wrote. “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.”

Rep. Markey released a statement on the matter, saying, “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. 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.” The issue with children unknowingly racking up large bills via In-App Purchases was first brought to light in an AP story from last December, which focused on “The Smurfs’ Village” game from Capcom.

« Apple explains purchase, management of subscriptions

OmniFocus for iPhone adds workflow improvements »

Related Stories

Comments

1

As much as I would like to think we could trust parents to do their jobs on this matter, all you have to do is watch the top grossing charts in iTunes to realize it’s a losing proposition. I’m not sure who’s more to blame: Apple, the parents, the corporations making this crap, or the dumb kids themselves, but it’s not surprising to see it under investigation. When “free” games aimed at youth somehow manage to be in the top 10 grossing apps consistently, there’s something rotten in Denmark.

Posted by Code Monkey in Midstate New York on February 24, 2011 at 1:07 PM (CST)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this channel entry.
Sign up for the iLounge Weekly Newsletter

Email:

Recent News

Recent Reviews

Recent Articles

Sign up for the iLounge Weekly Newsletter

Email:

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2014 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy