OFT gives game firms 1st April deadline to clean up in-app purchases


Updated on 03 February 2014 | 8 Comments

The Office of Fair Trading has given games firms until April to clean up their act when in comes to in-app purchases for mobile phone games.

The Office of Fair Trading (OFT) has taken steps to prevent children from running up huge bills while playing online games on smartphones and tablets.

The past few years have seen a handful of parents receive shocking credit card bills after their kids unwittingly spent a fortune buying virtual goods or shortcuts to the next level of a game. In some cases the “bill shock” has run into thousands of pounds.

OFT ruling

The OFT published its final principles for online and in-app games last week and has given games producers a deadline of 1st April to ensure their games do not breach consumer protection law.

The OFT investigation begun in April 2013 and was launched after a spate of incidents involving children spending hundreds, or even thousands, of pounds on in-app purchases in mobile games without their parents' permission.

The OFT has now ruled that:

  • Firms must be upfront about any costs associated with a game.
  • Payments should not be taken unless authorised, which means the payment account holder (such as a parent) has to give their express, informed consent.
  • Firms must tell gamers whether their personal data is to be shared with other parties for marketing purposes. 

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Bill shock

We reported a year ago how parents were being hit with massive credit card bills after letting their kids play smartphone games. App Store (for iPhone/iPad) and Play Store (for Android) purchases tend to be billed directly to the user’s credit card, which means cardholders only become aware of a problem when the monthly bill arrives.

One of my friends was caught out when her eight-year-old son ran up a £461 bill on her credit card by buying donuts on the Simpsons Tapped Out game – he developed a taste for donuts at £69.99 a pop. She contacted Apple and the firm agreed to refund the money as a one-off gesture.

My friend isn’t alone and the Simpsons game isn’t the only culprit. Other games that offer expensive in-app purchases include Angry Birds, Playmobil Pirates, Coin Dozer, Racing Penguin, My Little Pony and Smurfs’ Village.

Apple refunds US customers

Problems with so-called “freemium” apps are not isolated to the UK. The freemium model – where a game is free but charges players for various tools, boosters or help within the game – is popular everywhere.

Last month Apple agreed to refund “at least” $32.5 million (£19.8 million) to US customers who complained that their children were able to run up large bills by making in-app purchases without permission.

The move comes after the company was pursued by America's Federal Trade Commission (FTC) for a lack of clarity on in-app purchases.

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How to avoid bill shock

There are some simple steps parents can take to avoid bill shock.

Some are obvious, such as supervising their child’s smartphone or tablet use, checking what they’re up to, and talking to them about in-app purchases and bills.

You can also set up your phone so you need a password or PIN to make an in-app purchase.

On the iPhone, tap Settings > General > Restrictions, then change the settings so you need to enter a password every time you make a purchase.

There’s no such option on Android at the moment. If you buy something on Google Play, you'll be asked for your password. You then stay logged in for 30 minutes, enabling you or anyone else to make a purchase.

If you have a Blackberry you can change the settings so you need to enter your Blackberry ID password every time you make a purchase. Open Blackberry World on your phone then swipe down from the top of the screen. Under "settings", select "payment options” then switch the password prompt option on.

On a Windows phones you can set up Kid's Corner which gives the child restricted access to your handset and can ban in-app purchases.

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More on mobile phones:

In-app purchases: how your kids could leave you with a giant phone bill

Tesco Mobile launches free 4G

O2 announces price rise that avoids new Ofcom rules

Online ticket sellers agree to display fees upfront

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