FTC to Look Into Free-to-Play

February 23, 2011 -

The Federal Trade Commission revealed on Tuesday that it plans to look into "free to play" after several politicians complained about thousands of dollars in transactions initiated unknowingly by young children. The investigation is the result of a letter sent to the agency by Rep. Ed Markey (D-Mass.) complaining about children buying virtual items without their parents' consent (hint: it involves Smurf berries).

FTC chairman Jon Leibowitz responded to Markey that the practice of in-app purchases in iPhone and iPad games "raised concerns" that consumers may not understand the full ramifications of the charges they might face.

"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."

An FTC spokesperson confirmed the letter, but would not comment further. Apple did not respond to the report.

“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," Markey said in a statement. "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."

Source: Washington Post


Comments

Re: FTC to Look Into Free-to-Play

The nanny-state gets bigger and bigger. Children get more infantiled and babied. There is a reason I consider myself a libertarian now even if I disagree strongly with many of their policies. Society is Fucked.

"No law means no law" - Supreme Court Justice Hugo Black on the First Amendment

"No law means no law" - Supreme Court Justice Hugo Black on the First Amendment

Re: FTC to Look Into Free-to-Play

Once again an example of goverment being parents of kids because there real parents dosn't do anything for them.

http://www.magicinkgaming.com/

Re: FTC to Look Into Free-to-Play

I don't know, I think this might be a legit case of deceptive sales practices.

It is similiar to cases we used to see about cell phone (or landline) companies charging accounts for calling numbers that we not immediatly obvious as having a fee associated with them.  Dialing a 1-900 number you know you will see something on your phone bill, call a 1-800 or 1-215 and you would not expect to, yet for a while you could bind payment to any number.  Cell phones have chargebacks on SMS numbers, of where there is no way to easily tell ahead of time if it will end up on your bill... both of these have been investigated but phone companies were powerful enough to keep getting away with it.

Here, you have a game that has automatic access to your phone account, and it might not be obvious to an adult that hitting a brightly coloured button on the screen will automaticly charge to thier account or saved CC information.

Re: FTC to Look Into Free-to-Play

How exactly does this work?  Do you just click "Buy Smurfberry" and it charges your account?  At what point do you enter credit card information?

 

Andrew Eisen

Re: FTC to Look Into Free-to-Play

The sales are made through the iOS Payment APIs and the iPhone looks like it might save credit card inormation and so it would be relatively easy for someone to purchase by mistake.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: FTC to Look Into Free-to-Play

AFAIK, it's not the device itself that stores the credit card information: it's the Apple iTunes/App store. You need to have an iTunes account to download ANYTHING to an iDevice.

I have an iPod touch, not an iPhone, but there is a setting on the iPod touch that will completely prevent in-app purchases. It's not hard to find, either. You can also sign out of the store at any time (meaning you have to put the password in again to make any in-app purchases or download an app) or you can just disable downloading altogether.

(This is all based on my experience with the iPod Touch; I can't imagine that it's a whole lot different on other iDevices. It'd be pretty foolish to make the setups all that different, imo.)

Re: FTC to Look Into Free-to-Play

That is what I would like to know.

As much of a concern as it is to get charges to one's credit card, are you forced to store your credit card? Can you remove it and to a 'charge as you go' as many/most websites allow?

It seems like it really should have been pretty easy to keep kids from racking up these charges by not having a credit card anywhere near the game.

Re: FTC to Look Into Free-to-Play

Is the government actively trying to make children stupid?  By the time a kid is 13 (the age most on line anything reccomends before young users are left alone), he should understand what it means to buy something.   

Re: FTC to Look Into Free-to-Play

Governments trying to shut down or limit access to online games. Governments trying to control in-game transactions. It's all only a matter of time, I suppose. Personally, I don't think that in-game transactions made directly in real-world cash should be made easily and/or seemlessly. In comparison, something like Nexon's NX, AeriaGames points, or Microsoft's MSP aren't really all that bad since (unless your credit card is attached to your account/console) you have to buy the points separately.

A case where easier isn't necessarily better.

 

 

Re: FTC to Look Into Free-to-Play

So.. basically we have the old 1-900 argument going on again.   Well, I am sure the right person will get slushed and things will continue as they have been, just like cell phone charges.

 
Forgot your password?
Username :
Password :

Poll

How do you usually divide up your Humble Bundle payments?:

Shout box

You're not permitted to post shouts.
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
TheSmokeyhttp://www.huffingtonpost.com/2014/04/22/call-of-duty-swatting-hoax_n_5195659.html?utm_hp_ref=canada&ir=Canada CoD loser calls SWAT on person who beat him04/23/2014 - 7:13am
MaskedPixelantehttp://www.joystiq.com/2014/04/23/xbox-one-reaches-japan-on-september-4/ Just give it up, Microsoft. You're NEVER going to be big in Japan, especially now that the notoriously clunky in Japan Kinect is MANDATORY.04/23/2014 - 7:10am
Cheater87Has this been posted yet? http://www.destructoid.com/blogs/Lord+Spencer/ssv-saudi-arabia-bans-bravely-default-because-it-promotes-pedophilia--272016.phtml04/22/2014 - 9:31pm
ZippyDSMleehttp://www.escapistmagazine.com/news/view/133898-Fatal-Frame-V-Coming-Exclusively-to-Wii-U04/22/2014 - 8:50pm
Matthew Wilsonit is a game worth playing if you have a pc/360/ps304/20/2014 - 9:34pm
MaskedPixelantehttps://twitter.com/IGLevine/status/457552538343325696 The Lutece Twins show up in some of the most unlikely of places.04/20/2014 - 2:44pm
Andrew EisenAs it happens, Chinatown Wars is the only GTA game I've played.04/19/2014 - 10:43am
Papa MidnightWith GTA5 (to date) failing to even provide indication of a PC release, I'm realising that this might be the first GTA game that I have not played (outside of Chinatown Wars) since the series inception.04/19/2014 - 8:14am
IanCSo im guessing a bunch of edutainment games, which a lot of people elsewhere are going gaga over, dot count as classics? Okay. If you don't mind me, i have a sudden urge to play Putt Putt....04/19/2014 - 6:15am
MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
 

Be Heard - Contact Your Politician