FTC To Review Mobile In-App Purchases

Responding to complaints from several politicians, the Federal Trade Commission said it plans to investigate mobile in-app purchases such as those found in iOS and Android games. Two weeks ago, Senator Amy Klobuchar (MN), Senator Mark Pryor (AK), and Representative Ed Markey (MA) each sent letters to the FTC to note their concern about consumers, especially children, possibly not fully understanding the microtransactions featured in many free-to-play games. The lawmakers all pointed to a recent report that told the story of a family surprised to find charges exceeding $1,400 from Apple after an 8-year-old child purchased virtual "Smurfberries" in Capcom's popular iOS game Smurfs' Village. "We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases," responded FTC chairman Leibowitz in a letter sent to Rep. Markey and posted on The Washington Post. Leibowitz continued, "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." The FTC and Justice Department are also currently reviewing Apple's recently launched App Store subscription service. Markey told the Washington Post,, "What may appear in these games to be virtual coins and prizes to children result in very real costs to parents. I am pleased that the FTC has responded, and as the use of mobile apps continues to increase, I will continue to actively monitor developments in this important area."