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.

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