Regulator Says In-App Purchase Complaints Rise By 300 Percent

PhonePayPlus, the UK regulator of premium rate phone services, has said the number of complaints it has received about children rose by around 300 percent last year and has warned parents about the dangers of in-app purchases.

In its latest report entitled ‘Children as Connected Consumers’, the regulator said parents and children should be aware of the potential costs of smartphone apps and they should investigate content restriction options or take out pay-as-you-go price plan.

In-app purchase complaints

“Connected devices will define the age in which today’s children live and we are determined to ensure that they can receive the benefits while being protected from the risks,” said Paul Whiteing, chief executive of PhonePayPlus. “Smartphones in children’s pockets can burn holes in parent’s wallets, so we are working with partners across industry and other agencies to prevent this.”

It said two in three children aged between 11 and 16 had downloaded a free app onto their phone, increasing the risk of voluntary in-app purchases from legitimate applications or involuntary charges from malware masquerading as genuine, popular titles.

Fake versions of games such as Angry Birds and Cut The Rope have appeared in the past, each charging £15 to a customer’s phone bill every time the app was opened.

PhonePayPlus also cited the example of a 14-year-old’s naivety and trusting nature on social networks being exploited to make them pay for virtual credits for someone who wanted to contact their dying grandmother.

“This is a real challenge for parents and for us as a regulator but this plan meets that challenge head on,” said Whiting.

How much do you know about smartphones? Take our quiz!

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Recent Posts

UK’s CMA Readies Cloud Sector “Behavioural” Remedies – Report

Targetting AWS, Microsoft? British competition regulator soon to announce “behavioural” remedies for cloud sector

12 hours ago

Former Policy Boss At X Nick Pickles, Joins Sam Altman Venture

Move to Elon Musk rival. Former senior executive at X joins Sam Altman's venture formerly…

15 hours ago

Bitcoin Rises Above $96,000 Amid Trump Optimism

Bitcoin price rises towards $100,000, amid investor optimism of friendlier US regulatory landscape under Donald…

16 hours ago

FTX Co-Founder Gary Wang Spared Prison

Judge Kaplan praises former FTX CTO Gary Wang for his co-operation against Sam Bankman-Fried during…

17 hours ago