Mobile app developers are facing a tight deadline to comply with new regulations surrounding the controversial issue of in-app purchases.
The Office of Fair Trading (OFT) has warned the online game industry that it has just two months to get its house in order, over the issue.
The OFT began its own investigation into in-app purchases last April, after a sharp rise in complaints about children purchasing items worth thousands of pounds, unbeknown to their parents. In September, the OFT published its proposed rules for governing in-game purchases, so as to ensure children are not being unfairly pressured or encouraged to pay for additional content in web and app-based games.
And now the OFT has published its ‘final principles’ for online and in-app games. It has given games producers and developers a deadline of 1 April to ensure their games do not breach consumer protection law.
The OFT principles state that consumers must be told upfront about costs associated with a game or about in-game advertising. Consumers must also be told any other important information, such as whether personal data is shared with other parties for marketing purposes. And finally, the OFT principles also make clear that in-game payments should not be authorised, and should not be taken, unless the payment account holder, such as a parent, has given his or her express, informed consent.
The OFT warned that failure to comply with these principles could risk enforcement action.
Meanwhile the OFT has also provided parents with the following advice.
The OFT said it had received “positive engagement” from the games industry over the matter, and that significant improvements to the practices in the industry have already been made by many firms. However many games and apps are developed overseas, and it is not clear at the moment how the OFT intends to police this foreign software. The OFT for its part states that it is “working closely with international partners” to ensure that its principles are consistent with the laws of most key jurisdictions, in order to help to raise standards globally.
“Many children enjoy playing these types of games. This rapidly growing creative sector has also brought wider economic benefits,” said Clive Maxwell, OFT chief executive. “The on-line and apps based games industry has already made significant improvements during our consultation process. But it still needs to do more to protect children and treat its customers fairly. Our principles make clear the type of practices that games makers and platform operators should avoid.”
“Parents and carers have an important role to help protect their child and their bank balance,” said Maxwell. “Our advice is that parents check their device settings, play their child’s games themselves and read the game’s description online. Parents will also be encouraged to report concerns to Citizens Advice.”
The OFT said it will have access to complaints from 1 April and may use them when deciding whether to take enforcement action against publishers and developers.
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