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UK government investigating in-app purchase pressure on children
The Office of Fair Trading (OFT), which handles consumer protection in the UK, announced it's reviewing if freemium web and app games are encouraging children unduly to make purchases. The OFT says it's contacted certain companies behind free-to-play games, and asked parents and consumer groups to reach out with info about "potentially misleading or commercially aggressive practices" within such games.The investigation is focusing on games that directly target children, the OFT says, via excessive pressure to make a purchase or to do something that requires a purchase. The OFT states this is illegal under the country's Consumer Protection Regulations Act of 2008."We are concerned that children and their parents could be subject to unfair pressure to purchase when they are playing games they thought were free, but which can actually run up substantial costs," said OFT Senior Director for Goods and Consumer Cavendish Elithorn. "The OFT is not seeking to ban in-game purchases, but the games industry must ensure it is complying with the relevant regulations so that children are protected. We are speaking to the industry and will take enforcement action if necessary."According to OFT, 80 of the country's highest grossing Android apps on April 9 were freemium ones. Earlier this year, Apple paid upwards of $100 million in gift certificates to account holders whose children spent money without holder permission on Capcom's Smurfs Village iOS game, this after a settlement on a lawsuit which stated Apple "failed to adequately" disclose the presence of in-app purchases aimed at children.[Image Source: PicPocket Books]
Office of Fair Trading gives thumbs up to Amazon's purchase of The Book Depository
Amazon may have faced stiff opposition to its plans to acquire British online bookseller The Book Depository, but one of those not standing in its path is the Office of Fair Trading. Over protests from the UK Booksellers Association, Publishers Association and Independent Publishers Guild, the OFT approved the purchase, saying that the acquisition would not form a de facto monopoly. While Amazon's market share is "strong" its newest purchase only holds between two- and four-percent -- hardly making it a competitor of the internet giant. The Book Depository will continue to operate as an independent entity for the foreseeable future, but our friends across the pond now have one less option if they choose not to do business with Bezos.
