European Commission discussing in-app purchasing
The European Commission has been meeting with national enforcement authorities and large tech companies yesterday and today (27th and 28th) to discuss concerns regarding in-app purchasing models and their dangers.
The European Commission has been meeting with national enforcement authorities and large tech companies yesterday and today (27th and 28th) to discuss concerns regarding in-app purchasing models and their dangers.
Currently, over 50% of online games’ market consists of games advertised as “free”, even though they often include what is called in-app purchases. As these applications can charge credit cards by default, consumers are often not aware that they are spending money. This is especially dangerous when children are given access to their parents’ mobile devices to play such “free to download” games. As a response to complaints regarding this issue, the European Commission is meeting for discussion with national enforcement authorities and large tech companies and will ask the industry to provide solution that will ensure proper consumer protection within a clear timeframe.
“Europe’s app industry has enormous potential, both to generate jobs and growth, and to improve our daily lives through innovative technology. For the sector to deliver on its potential consumers must have confidence in new products. Misleading consumers is clearly the wrong business model and also goes against the spirit of EU rules on consumer protection. The European Commission will expect very concrete answers from the app industry to the concerns raised by citizens and national consumer organisations,” said Vice-President Viviane Reding, the EU’s Justice Commissioner.
“Consumers and in particular children need better protection against unexpected costs from in-app purchases. National enforcement authorities and the European Commission are discussing with industry how to address this issue which not only causes financial harm to consumers but can also put at stake the credibility of this very promising market. Coming up with concrete solutions as soon as possible will be a win-win for all,” said Commissioner Neven Mimica., who is responsible for Consumer Policy.
The action is led by the Danish Consumer Ombudsman with participation of France, the United Kingdom, Italy, Belgium, Luxembourg, Lithuania and members of the Consumer Protection Cooperation.
The four main issues raised by consumers to be discussed at the meetings are:
– Games advertised as “free” should not mislead consumers about the true costs involved;
– Games should not contain direct exhortations to children to buy items in a game or to persuade an adult to buy items for them;
– Consumers should be adequately informed about the payment arrangements and purchases should not be debited through default settings without consumers’ explicit consent;
– Traders should provide an email address so that consumers can contact them in case of queries or complaints.
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