FTC Asked To Investigate In-App Purchases

Mo money, mo problems!!!

so... we get more government babysitting because some kids are f@#$ing stupid?

Whatever happened to personal responsibility?

Here's an idea, if you don't want your spoiled brat to buy things on your credit card, don't put your credit card into their device so it's saved into memory, or turn on the feature that prevents it from happening. Then again, it's usually the kid setting it up for the parent, so I doubt many of them are told about parental control features.

Still, accept your own blame, you can't hand your children your wallet, tell them to buy whatever they want, then when they're done return what they bought saying it isn't your fault they bought it.

It's not a governmental problem, it is a parenting problem.

I actually don't have any kind of billing associated with my iTunes account for this reason. If I want to pay for something then will go through paypal which isn't automatic.

I am dismayed though that I have to type in my password everytime I want to update an installed app. Gee. Good thing I don't have to deal with this mess on my Droid phone

Yea pretty much

isn't the payment system designed specifically to allow for reckless and irresponsible spending? if people actually thought twice before buying any apps, sale wouldn't be in the billions.

but hey, we get to gamble our pensions on the stock market. what's 99 cents?

I honestly think this is the single most intelligent thing I've seen posted on this site... Now if just the rest of the world were as intelligent as this one post... Oh well, I can dream can't I??

Just to reiterate what everyone else has said, what happened to parental responsibility for their children's actions?

Also, don't these politicians have better ways to waste their time?

I guess I'm in the minority here, but offering 'free' children's games that encourage the kids to make purchases using their parents' credit card account without even so much as a password verification smells of fraud, at the very least it's unethical. Sure parents can opt out, but I bet most parents don't even know that these games are charging real money for virtual supplies until their iTunes receipt shows up 3 days later. These game makers have one goal: get the kids to buy fake stuff using mom and dad's real credit card, so if the FTC shuts them down, good.

The question is why these apps have automatic access to credit card details? I don't own an Apple product because I have never trusted the company, this seems to justify that belief.

If i buy a game from steam for example, that is created by a 3rd party, that third party will never have access to my credit card details, so why does Apple open up your PERSONAL and PRIVATE details to 3rd party developers, and now even Android is going the same way, shame on Google for that.

No 3rd party software should have the right to bill your CC without express consent being give and a pin code entered, this is set up under the name on convenience, but it is so you will spend money (or your kids will) without realising it has been spent.

And all of you calling parents and their kids stupid obviously don't have children yet, the majority of parents are good and decent and look after their children well, but you cannot watch them 24 hours a day, nor should you, kids need room to grow and develop, not to be in a bubble for all of their childhood

Remember Apple has 1 agenda, and that is suck the cash cow dry (that is you by the way)

I'm betting that most parents aren't the drooling idiots you so broadly paint them. In my case, my wife sometimes lets our kids take turns using her iPhone to watch videos or play games when we're traveling or waiting in a doctor's office, etc...we try to keep a selection of age-appropriate games and apps for them. Smurf Village caught my eye because it looked like something my son would enjoy and it was 'free'. Good thing I read the reviews before I downloaded it. The game makes it hard for the kids to progress unless they buy berries, these virtual berries are paid for with real money from the parents' iTunes account. The kid does not need any knowledge of the parents credit card info or iTunes password...just click and advance to the next level. There are 'opt-out' options, but that assumes every parent knows that the game is a really money-pit aimed at 6 year olds. Many parents are probably naive to the idea that a children's program would drain their account without so much as a requiring a password.

I'm sure all of the children you raised benefitted from your ability to monitor their every action and they never played a single video game without your complete understanding of the workings of the game.

In-App purchases in a way is like online gambling

Sometimes In-app purchases gives the developer a reason to offer less for the money. I know a few xbox games where the addons should of been included, except the developer was cheap. Games go on sale often, but in game add ons rarely ever. Games have to compete with games, and this competition lowers prices. But there is no such thing for in game purchases, so the prices never drop. = UNFAIR. Alsso for the fact a lot of times the purchases just flips a switch already in the software, and adds no extra content to what was purchases in the first place.

lets get to the core of the issue... parents stop having dumb children , actually teach them about the world and that money isn't free , now we get to have mrmore useless legislation in place cause your kid didn't understand what money is by the time they can read... grats you failed /end rant

This stinks.

Actually, government intervention is warranted.

In App Purchases lure people into downloading the app then you as an adult know better than spending money on the app, but a child does not.

Where this is going to be more of a problem is with the next generation PSP2 and 3DS platforms. You can bet that in App content will be a part of that eco-system.

I love all the "stupid" kid and parent remarks from guys that will probably never get laid much less have kids.

I would lay money down that every single one of you idiots does not have children and would raise them much worse than most parents if you did....

I guess all of you "geniuses" (read the sarcasm there) sprang from the womb with an IQ of 180.

On another note, I find inApp purchases to be deceptive. I paid 99 cents for an RPG game. However, within the game, after I die three time, it gives me the option to purchase life potions for an additional 99 cents within the app. If I had know there was a recurring fee, I would have never purchased it in the first place. I think it should be a black and white indication of whether an app uses inApp puchases or not. Furthermore, I think this needs to be clearly disclosed prior to purchasing/installing the app. I see the potential for this being abused as a deceptive/fraudulent system. Then the icing on the cake is directing this mechanism toward those who have less financial wisdom, kids!!! And then what happens when this gets outright exploited? Is Apples review process applied to all DLC in this way?

I simply see InApp purchases as "fine print" designed to squeeze more money than one agreed to pay.

Best financial advice I every heard: never NEVER link an account or credit card to an automatic payment system for a product that is variable in price (such as a phone bill or cable with pay-per-view). Instead, pay that bill by check or online monthly without re-occurring automatic deductions.
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To those who say this is a parenting problem, you are right - some of it is. However, it is not just that. The accusation is that marketers are intentionally preying on the naivety of children. Finally, young children are NOT miniature adults - there are certain cognitive abilities that need to develop and are often age based (the there-not there aspect of infant to the ability to make abstractions such as money standing for goods and services given and received).

kids not old enough to understand the concept of monetary value should not be playing on an iPhone/iPad/smartphone unsupervised, they should be playing with building blocks, running around outside, learning to ride bicycles and kicking a ball around

@hoofhearted
Apple will do nothing about predatory in app purchase because they get a cut of any in app purchase, apple's quality control is only linked to their financial gains, if there was some form of quality control there would not be so many pointless apps

Hi, welcome to 2011. While I agree with you in principle, the fact is that as these app-capable devices (be it an iPod, Android tablet, netbook, or lego-puter) become cheaper and more user-friendly, they will proliferate to kids as well as the existing network of teens and adults. As a result, a lot of parents will enable a credit card on the device to buy their kids a game or two. The problem is that there's no in-game re-verification, so the kids can just appear to be playing their game, meanwhile they're racking up purchases of virtual berries or virtual jello pudding.

By default, in-app purchases should be disabled or at least require the input of a password each time. Similar to how a Wii asks for password when attempting a restricted activity online such as a purchase.

WTF does a kid need a smart phone for anyway, teach them some responsibility and tell them if they want a "kewl" phone they have to get a job and pay for it. otherwise get them a basic cell phone for emergency use. people pamper their kids to much in ways that they shouldn't and it ends up with kids not realizing how hard it is to earn an honest dollar.

STUPID
try to ban such stupid parents rather than google.

Simply put, inApp purchases allows price hiding. Pretty soon in order to be competitive, all apps will simply show as free in the app store and all the real costs will be hidden from you until after you installed and possibly gotten used to it. Drug dealer mentality. Razer and blade model just like stupid ink jet printers.

You won't know the price until after you played it a bit or are hooked, then halfway through, SLAM $99.95.

You can now be hit with a recurring subscription fee for the same app you have always used.