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U.S. Regulators Looking Into Kids' Overspending on In App Purchases

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Original poster
Apr 12, 2001
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The Washington Post reports that the U.S. Federal Trade Commission has agreed to take a look at Apple's in app purchasing mechanism as complaints of children being able to spend hundreds of dollars on in-game purchases have continued to rise. The review is being sparked by a letter from U.S. Represenative Ed Markey expressing concern over how such purchases are being marketed to young children who do not understand the money involved.
FTC Chairman Jon Leibowitz wrote in a letter to Rep. Ed Markey (D-Mass.) that the practice of "in-app purchases" for certain applications on Apple iPhones, iPads and iPods raised concerns that consumers may not fully understand the ramifications of those charges. The Washington Post wrote about hefty charges amassed by children using Apple device games that public interest groups said should not be included in software geared for children. Some parents said their children didn't understand the difference between real and pretend purchases for items such as $99 barrels of Smurfberries on the Capcom Interactive game Smurfs Village.

"We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases," Leibowitz wrote. "Let me assure you we will look closely at the current industry practice with respect to the marketing and delivery of these types of applications."
Click to expand...
In app purchases generally require the same password authentication process as regular App Store purchases, a step that should limit children's ability to purchase in-app content as long as their parents have not shared their iTunes Store passwords with them. But Apple has enabled a 15-minute unlock period following password authentication to allow users to make multiple purchases without having to enter their password every time. It is believed that the majority of these occurrences of children racking up large in app purchases have come after a parent had recently entered his or her password (such as in downloading the app for the child) and then handed the device over to the child, at which point the child could initiate in app purchases without the need to enter a password.

Apple has reportedly been considering lowering the password window from 15 minutes in hopes of reducing cases of children being able to spend money within applications. The company also offers parental controls built into iOS that allow adults to completely disable in app purchasing, although many casual users may be unaware of the option's existence.

Article Link: U.S. Regulators Looking Into Kids' Overspending on In App Purchases
 
Article Link
https://www.macrumors.com/2011/02/23/u-s-regulators-looking-into-kids-overspending-on-in-app-purchases/
P

pika2000

Suspended
Jun 22, 2007
5,587
4,902
In-app purchase can be disabled using parental control. This is stupid. I expect my tax to be used by my government to tackle bigger problems, oh maybe like jobs and the economy, not to appease some idiot "parents."
 
R

rhomsy

macrumors regular
Jul 6, 2007
104
3
This is welcome news. I hope all purchases, not just from the app store, are completely regulated and controlled. They also should pass some regulations into what not only our kids should eat, but also us adults. What about the fashion and clothing industry. What a waste of money. Regulate that as well. We don't need fancy clothes when our money could be used instead to fund pensions and research the growth of algae in tropical coral reefs.

If they are successful at enacting all of these wonderful regulations, then we can all get lobotomies and be led around with a government helper on full benefits. Our day will come. Government is indeed good.
 
Tailpike1153

Tailpike1153

macrumors 6502a
Aug 31, 2004
663
56
Bellevue, WA
For a small sum of a $1Billion USD, I volunteer to watch over the innocent children and their purchases. I will smack their little fingers with a a bamboo cane. Suddenly this reminds me of that South Park episode where they started smacking "ADD" kids. "Sit down and study." I think parents need to get caned then schooled into using parental controls
 
E

Eddyisgreat

macrumors 601
Oct 24, 2007
4,851
2
So wait I will need to be burdened with a lower time out period because some soccer mom refuses to discipline junior while she sips on a venti iced latte from starbucks in her 2010 QX45 Urban assault vehicle??

wtheck?
 
mcapanelli

mcapanelli

macrumors regular
Aug 2, 2008
235
85
Ellijay, GA
Here we go kids!! Expect lot's of grandstanding and some real knee jerk legislation cause this IS the year to gear up for the big election. I wish someone would inform people that it's their responsibility to be informed consumers AND parents. My kid racked up $380 in cell downloads in one month. I didn't need my senator to step in. I took away her phone for a month, blocked her ability to purchase ANYTHING on it, and worked out the bill with my provider (AT&T) who practically wiped it all away. This is just going to burden us with more laws and subsequently, more taxes in the form of direct taxation of products, indirect taxes by way of price hikes due to a rise in business tax, or BOTH.
 
E

eNcrypTioN

macrumors 6502
Nov 4, 2009
393
1
mcapanelli said:
Here we go kids!! Expect lot's of grandstanding and some real knee jerk legislation cause this IS the year to gear up for the big election. I wish someone would inform people that it's their responsibility to be informed consumers AND parents. My kid racked up $380 in cell downloads in one month. I didn't need my senator to step in. I took away her phone for a month, blocked her ability to purchase ANYTHING on it, and worked out the bill with my provider (AT&T) who practically wiped it all away. This is just going to burden us with more laws and subsequently, more taxes in the form of direct taxation of products, indirect taxes by way of price hikes due to a rise in business tax, or BOTH.
Click to expand...

Amazing, a parent that actually does what they are supposed to.
 
Amazing Iceman

Amazing Iceman

macrumors 603
Nov 8, 2008
5,301
4,046
Florida, U.S.A.
FTC go do something useful, let parents learn to educate their kids and earn their respect, so they won't over spend at the AppStore.
It could be the Candy Store or the Arcade, so what's the difference???
 
C

cmwade77

macrumors 65816
Nov 18, 2008
1,071
1,200
Parents need to grow up and be just that....parents and not the kid's buddy, etc.

We do not need Government to step in here, Apple provides several ways for parents to control this:
  1. Do not give your kids your iTunes password
  2. Setup a unique iTunes account for each child
  3. Setup an allowance on each account
  4. Make sure that the account is link to a prepaid card that only has the allowance amount available on it, most banks offer these for free for your kids and you can automatically transfer funds to it each month, payday, etc. (Ok, this one is technically not Apple's method, but it still exists)
  5. Block in App Purchases using parental controls

Government needs to get involved in some things, for example making sure that companies are not monopolies.

They do not need to be involved in every aspect of our PERSONAL lives!

The job of Government is to:
  • Keep People Safe (Fire Fighters, Police, Paramedics, enact laws that handle this, etc.)
  • Ensure that interstate commerce is possible
  • Education
  • Handle International Travel Documentation and Immigration
That is all, we need to eliminate all of the other junk that Government does and let people govern themselves, get back to basic liberties that we have lost along the way.
 
rdowns

rdowns

macrumors Penryn
Jul 11, 2003
27,397
12,521
Please let this serve as public notice of my intentions to bring to market, iParent, a revolutionary new app that allows even the laziest dumb asses to be good parents. Simply type in your parental situation into the app and buy your answer via an in-app purchase. :rolleyes:
 
T

TwoSocEmBoppers

Guest
May 30, 2010
274
1
Sunny Southern California
This is appalling. I cannot believe this government intrusion is even legal.

So...where does parenting come into the picture here?! That is the problem with this and many, many other problems in society.

Edit: Posted my response without even reading other comments. Glad to see I'm not alone on this one.
 
iScott428

iScott428

macrumors regular
Feb 23, 2011
230
0
Orlando, FL
pika2000 said:
In-app purchase can be disabled using parental control. This is stupid. I expect my tax to be used by my government to tackle bigger problems, oh maybe like jobs and the economy, not to appease some idiot "parents."
Click to expand...

Yes correct, this is the parents fault. Its called parenting or should the government send you a check to do that every month too!
 
Amazing Iceman

Amazing Iceman

macrumors 603
Nov 8, 2008
5,301
4,046
Florida, U.S.A.
rdowns said:
Please let this serve as public notice of my intentions to bring to market, iParent, a revolutionary new app that allows even the laziest dumb asses to be good parents. Simply type in your parental situation into the app and buy your answer via an in-app purchase. :rolleyes:
Click to expand...

Lol... Great idea, wish you luck :D
 
J

jimbobb24

macrumors 68040
Jun 6, 2005
3,343
5,355
The government already manages my retirement and my healthcare. Managing in-app purchases seems like small potatoes. Really, there are no limits to federal power anymore. They should just do whatever gets them a few minutes on TV to get re-elected.
 
burtx

burtx

macrumors member
Jul 10, 2008
38
20
Easy fix

Just make it so you can turn off the 15 minute unlock in the settings. It could even be defaulted to be off.
 
optophobia

optophobia

macrumors 6502a
Oct 26, 2007
877
24
Hudson MA
Thank you to the Stupid parents for wasting my tax money.
Really, you are not giving a good name for yourselves to the rest of the world.
 
jav6454

jav6454

macrumors Core
Nov 14, 2007
22,303
6,257
1 Geostationary Tower Plaza
Parenting fail. People should learn how to use the device and check if the device has parental controls.

Truly, parents have become dependent on Uncle Sam to do the parenting work for them....
 
BC2009

BC2009

macrumors 68020
Jul 1, 2009
2,237
1,393
Eddyisgreat said:
So wait I will need to be burdened with a lower time out period because some soccer mom refuses to discipline junior while she sips on a venti iced latte from starbucks in her 2010 QX45 Urban assault vehicle??
Click to expand...

hillarious - rofl.

rhomsy said:
This is welcome news. I hope all purchases, not just from the app store, are completely regulated and controlled. They also should pass some regulations into what not only our kids should eat, but also us adults. What about the fashion and clothing industry. What a waste of money. Regulate that as well. We don't need fancy clothes when our money could be used instead to fund pensions and research the growth of algae in tropical coral reefs.

If they are successful at enacting all of these wonderful regulations, then we can all get lobotomies and be led around with a government helper on full benefits. Our day will come. Government is indeed good.
Click to expand...

enjoyed that immensely. thank you for the post.

rdowns said:
Please let this serve as public notice of my intentions to bring to market, iParent, a revolutionary new app that allows even the laziest dumb asses to be good parents. Simply type in your parental situation into the app and buy your answer via an in-app purchase. :rolleyes:
Click to expand...

You should have it let the users subscribe to questions and answers from other parents too so it is a recurring charge.

jav6454 said:
Parenting fail. People should learn how to use the device and check if the device has parental controls.

Truly, parents have become dependent on Uncle Sam to do the parenting work for them....
Click to expand...

Yes "parent" is not just a noun, it is also a verb. It is something you are suppose to do when you have children. Handing a kid a device that is ready to let them buy whatever they want is irresponsible and has consequences. Both children and parents need to understand that.

mcapanelli said:
My kid racked up $380 in cell downloads in one month. I didn't need my senator to step in. I took away her phone for a month, blocked her ability to purchase ANYTHING on it, and worked out the bill with my provider (AT&T) who practically wiped it all away.
Click to expand...

As a father of three, I applaud you. You dealt with the result, taught your kid the consequences for her actions, and made sure it would not happen again. This is exactly what is suppose to happen when you have kids. You can't anticipate everything they might do, but you sure can make them understand the consequences for their actions and make changes to avoid history from repeating itself.
 
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