FTC looking into Apple’s in-app purchasing policy

The Federal Trade Commission will review how Apple markets games with in-app purchases, but not for the reason you may think.Apple introduced a controversial policy for developers last week when it said that it would take a 30 percent cut of revenue generated from subscription publishing apps that included in-app purchases. Apple also said it would only accept apps whose subscription offers through its iOS app are consistent with the lowest price offered by the publisher elsewhere. The U.S. Department of Justice said last week it would take a look at Apple’s policy, but stopped short of launching any kind of formal inquiry.To read this CNET report in full, see:
news.cnet.com/8301-31021_3-20035058-260.html Also see:FTC says it will look into Apple’s marketing of in-app purchases to kids
The Federal Trade Commission will investigate Apple’s marketing of iOS games with in-app purchases to children. The decision comes after a wave of complaints about kids running up huge bills on their parents’ iTunes accounts. FTC Chairman Jon Leibowitz acknowledged in a letter to US Rep. Edward Markey (D-MA) that the FTC shares his concern over the phenomenon, saying the Commission would dig deeper into it.Stories about children inadvertently spending thousands of dollars inside of their parents’ iPhone apps have circulated around the Web over the last year or so, but have picked up recently thanks to a new wave of mainstream coverage. Markey had written an open letter (PDF) to the FTC last week over Apple’s (and Google’s) use of in-app purchases to sell gaming add-ons to kids, saying that he was “disturbed” by the reports.

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