Apple nudged FTC to look into Google Play Store after in-app purchase settlement
Days after the company agreed to a $32.5 million settlement with the U.S. Federal Trade Commission over in-app purchase policies, Apple general counsel Bruce Sewell sent an email to commissioners directing their attention to an article saying the Google Play Store lets children spend their parents' money "like a drunken sailor."
Source: FTC
"I thought this article might be of some interest, particularly if you have not already seen it," Sewell wrote to commissioners Edith Ramirez and Julie Brill in an e-mail uncovered by Politico. The article in question, from watchdog Consumer Reports, lays bare faults in Google's own app marketplace that mirror those that landed Apple in hot water with federal regulators.
It is unclear if the commission followed up on Sewell's missive, though no investigation or lawsuit against Google has been announced.
The FTC announced an investigation into the in-app purchase behavior of so-called "freemium" apps and games aimed at children in 2011, following complaints from consumers. In one high-profile incident, an 8-year-old spent more than $6,000 on in-app purchases before his parents caught on, though Apple eventually refunded that money.
A number of other families in a similar situation banded together in a class-action suit, which Apple settled by offering full refunds and iTunes credits to those affected. The FTC continued its own legal action, however, leading to an eventual agreement with terms that essentially mirrored those of the earlier class-action suit.
Apple CEO Tim Cook criticized the FTC's decision to press the matter, saying that it "smacked of double jeopardy." At least one of the commissioners agreed with Cook, penning a dissent that said the FTC's decision had "no foundation."
Source: FTC
"I thought this article might be of some interest, particularly if you have not already seen it," Sewell wrote to commissioners Edith Ramirez and Julie Brill in an e-mail uncovered by Politico. The article in question, from watchdog Consumer Reports, lays bare faults in Google's own app marketplace that mirror those that landed Apple in hot water with federal regulators.
It is unclear if the commission followed up on Sewell's missive, though no investigation or lawsuit against Google has been announced.
The FTC announced an investigation into the in-app purchase behavior of so-called "freemium" apps and games aimed at children in 2011, following complaints from consumers. In one high-profile incident, an 8-year-old spent more than $6,000 on in-app purchases before his parents caught on, though Apple eventually refunded that money.
A number of other families in a similar situation banded together in a class-action suit, which Apple settled by offering full refunds and iTunes credits to those affected. The FTC continued its own legal action, however, leading to an eventual agreement with terms that essentially mirrored those of the earlier class-action suit.
Apple CEO Tim Cook criticized the FTC's decision to press the matter, saying that it "smacked of double jeopardy." At least one of the commissioners agreed with Cook, penning a dissent that said the FTC's decision had "no foundation."
Comments
I'm turned off by "freemium" apps. I'd rather pay money and buy a game like $10 XCom or $3 The Room, than get one free and feel the urge to buy to "help me get along".
Why would the government sue Google over this? That would violate the policy of It's Only Wrong When Apple Does It. Besides, Google says they Do No Evil, so there. The guilty party has been punished, the government earn their cut of protection money, and Google is not evil. And parents everywhere are off the hook.
Because it violates Apple's policy of It's Only When Someone Else Does It. Don't worry about the settlement though, I'm sure Obama can overturn it.
I agree except for games that allow you to play part of the game and then pay for the rest.
I really wish Apple would either put in a mechanism for allowing part of the game as a demo, or put these games in a desperate category.
Same with Amazon etc.
Yeah, Android appears to be the elephant in the target-kids-with-freemium-games room. It would be odd (and inconsistent, albeit unsurprising) for the FTC to not give them the same treatment.
I thought I'd read that Google had voluntarily complied with the rules laid down for the App Store back in March but I don't find the source now.
Looks like Apple got their info from consumer reports.
http://www.consumerreports.org/cro/news/2014/01/google-play-store-lets-your-kid-spend-like-a-drunken-sailor/index.htm
...tattletales
No, I think Apple is tired of being the poster child, always held to a different standard than the rest who fly under the radar.
Aren't they in a different standard? Doesn't Apple hold itself to the highest standard? Why are you then surprised when other people try to hold them to that?
Now to narc on Amazon for their e-book abuses.
They went after Apple because they know that Apple care enough to "make it right" (pay a massive fine).
On the flip side, they know that Google doesn't give a shit and will put up a fight and make it hard, costing loads in court time, so the FTC just won't bother.
It's the same as police targeting drivers instead of real law breakers because drivers are an easy target.
I kind of prefer the up-front fee but only if I know the app will be good and I discovered it was far harder to determine this in the App Store than with PC titles. That's where freemium or free-to-play as it's known on Steam is taking off as it's like a demo that you pay for once you find you like it or pay nothing if you don't. The problem is nobody really knows how to do it in a way that's not annoying. EA got burned over this as they advertised one of their games as free but the gameplay is limited if you don't buy in-app purchases:
http://www.eurogamer.net/articles/2014-07-02-asa-bans-dungeon-keeper-ad-accuses-ea-of-misleading-customers
I suspect the reason that Google got a free pass on this issue is they don't vet apps before they go in the store. They just run their malware check on the apps. Apple actually tests apps for content to ensure no nudity, political material etc is in there so they can prevent the apps going live. Google has plausible deniability by not bothering to check but they should get the same scrutiny for apps that have received complaints and they haven't taken steps to address.
...tattletales
Not really. A true "tattletale" or "rat" is someone who goes anonymously behind your back to "inform". If you know the person who provided the information, and they make no bones about it, then it's not really the same.
The real tattletales are those who filed patent examinations against Apple. Those requests were anonymous, so people can speculate if it was Google or Samsung or someone else, but we don't really know since nobody has the balls to own up to it.
Aren't they in a different standard? Doesn't Apple hold itself to the highest standard? Why are you then surprised when other people try to hold them to that?
Just because a company holds themselves to a higher standard doesn't mean that they should be governed at that same higher standard. That would mean a company with no or low standard of ethics should be allowed to get away with doing any form of unscrupulous behavior or practice they want…without repercussion.