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Developers respond to FTC inquiry on in-app purchases

#1 User is offline   Macworld 

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Posted 25 February 2011 - 01:02 PM

Post your comments for Developers respond to FTC inquiry on in-app purchases here
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#2 User is offline   DKotaev 

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Posted 25 February 2011 - 01:34 PM

View PostMacworld, on 25 February 2011 - 01:02 PM, said:



This should help:
Posted Image

Settings-General-Restrictions
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#3 User is offline   reallycrazy 

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  Posted 25 February 2011 - 02:23 PM

Yes, children have a great concept of what 'real money' means.

It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.

Capcom had to submit a written response to the FTC because they couldn't make that statement with a straight face in person.
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#4 User is offline   DKotaev 

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Posted 25 February 2011 - 02:26 PM

View Postreallycrazy, on 25 February 2011 - 02:23 PM, said:

Yes, children have a great concept of what 'real money' means.

It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.

Capcom had to submit a written response to the FTC because they couldn't make that statement with a straight face in person.


You do mean 99 cents right? Right?!?
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#5 User is offline   reallycrazy 

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Posted 25 February 2011 - 02:53 PM

View PostDKotaev, on 25 February 2011 - 02:26 PM, said:

View Postreallycrazy, on 25 February 2011 - 02:23 PM, said:

Yes, children have a great concept of what 'real money' means.

It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.

Capcom had to submit a written response to the FTC because they couldn't make that statement with a straight face in person.


You do mean 99 cents right? Right?!?


No, it really is $99.00.
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#6 User is offline   DKotaev 

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Posted 25 February 2011 - 02:57 PM

View Postreallycrazy, on 25 February 2011 - 02:53 PM, said:

View PostDKotaev, on 25 February 2011 - 02:26 PM, said:

View Postreallycrazy, on 25 February 2011 - 02:23 PM, said:

Yes, children have a great concept of what 'real money' means.

It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.

Capcom had to submit a written response to the FTC because they couldn't make that statement with a straight face in person.


You do mean 99 cents right? Right?!?


No, it really is $99.00.


99 dollars? Holy cow.
That is unjust.
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#7 User is offline   leicaman 

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  Posted 25 February 2011 - 03:16 PM

Pass the blame to Apple. And tell people to get the refund from Apple. As if Apple snuck that rilp-off feature into their game to make money for Apple.

That's like the identity thief blaming the bank for giving their customer a credit card.
Eric

Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity. - Martin Luther King, Jr.
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#8 User is offline   MacMusing 

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  Posted 25 February 2011 - 03:51 PM

Apple has done nothing wrong her, yet everybody put's the blame on Apple!

I feel bad for the parent's of the girl who racked up $1,400 in In-App Purchases.

But I know how it feels to inadvertently buy an Application. It's horrible but I sent a complaint to Apple for a Refund and as Apple, they will definitely do their best to help me(hopefully).
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#9 User is offline   DarkSith 

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Posted 25 February 2011 - 04:26 PM

View Postreallycrazy, on 25 February 2011 - 02:23 PM, said:

...
It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.
...


You'd be wrong there my friend. Gun Bros, which is not a child's game, has TWO items in it for sale for $99.00 - Warbucks or Coins.
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#10 User is offline   AdamC 

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  Posted 25 February 2011 - 05:15 PM

Parental control in preference will solve the problem but blaming Apple for developers trying to gouge parents is simply the thoughts of very immature minds.

Btw who is making most of the dough - developers or Apple.
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#11 User is offline   reallycrazy 

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Posted 25 February 2011 - 07:19 PM

View PostDarkSith, on 25 February 2011 - 04:26 PM, said:

View Postreallycrazy, on 25 February 2011 - 02:23 PM, said:

...
It totally makes sense that a virtual wheelbarrow of smurfberries in a children's game costs $99. I'm sure they have a lot of games targeted at adults with similar pricing levels. Hmm, quick check, no. Only the games for children have price levels like this.
...


You'd be wrong there my friend. Gun Bros, which is not a child's game, has TWO items in it for sale for $99.00 - Warbucks or Coins.


Well, my context was games by this particular company (Capcom Interactive Inc.), which makes some games for kids and some games for adults. The games that appear targeted at kids are free to buy, but have crazy high in-app purchases [smurfs, zombie cafe], while the games that appear more adult oriented [cash cab, mr. bill, etc], all cost a fairly low initial fee, with no and/or low in-app fee's.

To say they aren't targeting children is being disingenuous, IMHO.
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#12 User is offline   MmnW 

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  Posted 25 February 2011 - 10:53 PM

It is correct for the FTC to investigate this. And they shouldn't just investigate the safeguards in place, but the business model itself should be on trial. While it may be a nice idea to get your money via In-App purchases with an adult game. It is questionable at least if children of that age the app targets are capable of understanding the concept of money at all.

Putting the blame on the parents and the parental controls can not be the answer. The in-app purchase is an integral part of the game and the business model. Making children ask their parents for every in-app purchase would destroy the whole concept of the financing model. The developer actually calculates on children buying stuff. And the $100 smurfberries is clear evidence for that.

And Apple really cant absolve itself from this. They take a 30% cut and clearly act as reseller. So they are legally liable.

I hope the FTC or Apple will ban in app purchases for all games under a certain age. This would be the best solution.
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#13 User is offline   vineviz 

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Posted 26 February 2011 - 08:13 AM

View PostDKotaev, on 25 February 2011 - 01:34 PM, said:

This should help:
Settings-General-Restrictions


I chose to put the Apple account that the iPhone uses for inApp purchases on a monthly allowance via iTunes. It is an elegant solution that allows easy purchases (just a password away) but no surprises when the credit card bill comes.

$100 for a barrow of cyberberries is rapacious, I agree, but a little bit of parental responsibility goes a long way.
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#14 User is offline   redgeminipa 

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  Posted 26 February 2011 - 08:37 AM

If they really do charge $99 for that, it's insane! Parents need to make sure they're using parental controls in these devices. They have to set them up for the kids anyway, so just take the extra few seconds to do it right. Or, set up the iTunes account to only accept gift cards. When the money in the account is used up, they're shut off. Better yet, open a new checking account at your bank solely for the use of iTunes. Hopefully you're with an honest bank that will decline charges when you're account is empty. If not, it's time to find a new bank!

This almost reminds me of when Apple started restricting adult-themed apps because kids might download them. After I, and I'm sure many others, sent numerous emails to Apple showing our concerns, they finally changed their tune.

The bottom line is: Parental Controls are part of iOS. If parents are concerned with what their kids are doing with these devices, they need to be responsible enough to take advantage of those controls.
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