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Games Programmer
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Freemium model facing watchdog probe

Freemium model facing watchdog probe

'We will closely monitor this industry practice' says FTC

The US Federal Trade Commission is looking into reports of children blowing their parents' credit cards on mobile social games.

The FTC says it's aware of complaints that in-app payments can allow children to spend money within mobile social games without their parents' permission, and is looking into the issue.

In a letter to Democrat congressman Ed Markey, who had asked about the problems, FTC chairman Jon Leibowitz reveals that the matter is firmly on its radar. The Washington Post quotes his letter:

"We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases. 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."

iOS games like Smurfs' Village were the first to be subject to these complaints last year, as parents realised that once they had logged in to the App Store on a device, there was a 15-minute window during which any further purchases - including IAP - did not require a password.

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As several children racked up big bills on in-game SmurfBerries in Capcom's social game, media reports began to criticise the practice. With Android and BlackBerry also getting in-app payments this year, it is no surprise the FTC is looking into what (if anything) needs to change to prevent further complaints.

Artical originally appeared on Mobile Entertainmment

Without permission?!

posted by Craig Feb 23, 2011 at 2:01 pm
1
Craig

"allow children to spend money within mobile social games without their parents' permission"

Utter pish. Sign out of the store if this is an issue, or keep a responsible eye on what they are doing like any good parent should. Honestly it is just one thing after another with the whole blame game these days.

If you don't pay attention to your child and their activities then you deserve to have a wake up call like this!

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It's there own fault

posted by Cathy Dec 30, 2012 at 8:15 am
2
Cathy

You shouldn't be letting anyone near your credit card or your saved credit card details on an online site either. If it's not your kid it's someone else who will be using it just look at that story of people losing there credit cards to thieves at Cinemas be more careful. The probe is not necessary nor is the game industry changing it's ways. What needs to change is credit card holders attitude your blaming someone else for your own irresponsibility. The game companies & banks should not refund you nor should any other company they should teach you it's not there fault that your irresponsible. Your old enough to have a kid you should be responsible enough to look after your own financial security.

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