U.S. Congressman Wants to Prevent Kids from Buying Smurfberries

[Greg Tito]

U.S. Congressman Wants to Prevent Kids from Buying Smurfberries

A representative from Massachusetts asked a federal agency to investigate the AppStore for misleading children into buying virtual items with real money, and the FTC agreed to review the situation.

In the great Smurfberry Kerfuffle of 2011 [http://www.escapistmagazine.com/news/view/107662-Eight-Year-Old-Girl-Blows-1400-on-Smurfberries], an 8-year-old girl unwittingly purchased $1400 worth of digital goods while playing the Smurf Village app on her parent's iPad. Although the money was refunded by Apple, the point stands that a child was easily led to make the purchase, and that there isn't enough of a distinction made in such freemium games between transactions that cost real money and those that use fictional currency. In response, Rep. Edward Markey, a Democrat from Massachusetts, wrote a letter suggesting that the Federal Trade Commission look into these kinds of applications. The FTC Chairman, Jon Leibowitz, responded today that he was indeed looking into the Smurfberry problem.

"We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases," Leibowitz said in a statement. "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."

Rep. Markey was quick to link his name once again to the issue by responding with a statement of his own. "What may appear in these games to be virtual coins and prizes to children result in very real costs to parents," said Markey. "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."

The FTC will probably take a while to look into the allegations, but expect to see some kind of policy for freemium or free-to-play Apps in the future. The ramifications for this development are far-reaching for the videogame industry as free-to-play and freemium games are quickly taking over the market, not only with casual games on social networking sites but also so-called hardcore MMOs like LOTRO and Champions Online.

All of these games are now at risk to be regulated by the FTC based on what the commission finds in its review.

Source: Washington Post [http://voices.washingtonpost.com/posttech/2011/02/ftc_chairman_to_probe_apple_ip.html]

Permalink

 

[Jiefu]

I think some sort of standardized warning label for transactions that will cost real world money is necessary - otherwise developers could just mislead consumers too easily. A mandatory warning would likely reduce accidental and misinformed purchases.

 

[Realitycrash]

They have warning-labels for other apps, when you are downloading, so why not for this?

 

[hansari]

I think some sort of standardized warning label for transactions that will cost real world money is necessary - otherwise developers could just mislead consumers too easily. A mandatory warning would likely reduce accidental and misinformed purchases.

Kids might skip them though.

Unless rather than an "ok" or "accept" button that an quickly be clicked, its one of those popups that ask you to press the word "transaction" in the third sentence of the paragraph...

 

[samsonguy920]

Considering the new territory here, Apple and other providers are in a position to do something loud and clear before the FTC does something that could even be just as harsh on consumers as the companies. But considering Apple's attitude lately, I have my doubts that anything they do will amount to much.
So much for cutting down government....

I think some sort of standardized warning label for transactions that will cost real world money is necessary - otherwise developers could just mislead consumers too easily. A mandatory warning would likely reduce accidental and misinformed purchases.

That's not a loud and clear action, as games already carry that kind of label for other reasons that a lot of parents are obviously ignoring. You know what one, it comes with E,T,M,AO....
There needs to be a mechanism ingame to make it clear that something is going to get added to your phone bill. Along with needing to put in that a person understands instead of just an OK button. I sure as heck wouldn't say captcha as those are hard enough to read for any John Q Citizen. But having to type out 'I Allow This' or 'Pay the dang thing' might give a child pause and ask Mommy or Daddy for help.

 

[Canid117]

There are better ways for the government to spend its time but this is far from the worst way.

 

[Johnnyallstar]

Yeah, there is something wrong with the general design of that game which should be addressed, but the government is definitely the wrong entity to address it.

 

[GiantRaven]

All transactions that involve actual money should require a password to proceed. Every time you want to purchase.

 

[jonnosferatu]

Yeah, there is something wrong with the general design of that game which should be addressed, but the government is definitely the wrong entity to address it.

How so? The developers have very little incentive to do it themselves, the issue is minor enough that Apple isn't likely to care about addressing it proactively, and I don't know of any voluntary standards groups (e.g. ESRB) with sway over this.

Regulation is (or at least, should be) primarily focused on making industry responsible for its externalities (both good and bad), and this is a very good example of a time when that at least could be what it winds up being used for.

 

[Iridul]

My understanding is that the smurfberries in question can cost around $60 a barrow. How in any way is that justifiable? Even if marketed to adults I would argue that it was a scam, or at the very least profiteering. When you add children into the mix it's simply reprehensible. Usually I'd say that the authorities should just leave the industry be, but in this case it seems that the industry, and the mighty moralistic Apple of anti-corporate exploitation anti-Microsoftness, has basically been caught with their pants around their ankles.

 

[Smooth Operator]

Screw warning labels, this simply should not be possible, they are selling imaginary consumables for $99 to kids... they are worse then a mother f*ing crack dealer!

 

[qbanknight]

To be fair, these things are very similar to scams for stupid people. Sometimes I laugh at how we need a warning label for everything, but there have been so many reports of children idiotically using them w/o parental consent that Congress should at the very least threaten legislation so the companies can enforce their own safeguards

 

[qbanknight]

Yeah, there is something wrong with the general design of that game which should be addressed, but the government is definitely the wrong entity to address it.

How so? The developers have very little incentive to do it themselves, the issue is minor enough that Apple isn't likely to care about addressing it proactively, and I don't know of any voluntary standards groups (e.g. ESRB) with sway over this.

Regulation is (or at least, should be) primarily focused on making industry responsible for its externalities (both good and bad), and this is a very good example of a time when that at least could be what it winds up being used for.

It's best to threaten them with legislation unless they take action on their own. Similar things have happened with regulating film, television, internet, and games in regards of their access to children. All of these industries have their own regulation standards but they need to a threat of government regulation before they undertake their own measures

 

[Scabadus]

That's not a loud and clear action, as games already carry that kind of label for other reasons that a lot of parents are obviously ignoring. You know what one, it comes with E,T,M,AO....

You know, you appear to have unintentionally made a very good point: let's just put this warning next to the age ratings, then after a few parents are hit with a thousand dollar bills maybe the rest will pay attention the the things and won't buy Dead Space 3 or GTA V for their nine year olds.

 

[Johnnyallstar]

Yeah, there is something wrong with the general design of that game which should be addressed, but the government is definitely the wrong entity to address it.

How so? The developers have very little incentive to do it themselves, the issue is minor enough that Apple isn't likely to care about addressing it proactively, and I don't know of any voluntary standards groups (e.g. ESRB) with sway over this.

Regulation is (or at least, should be) primarily focused on making industry responsible for its externalities (both good and bad), and this is a very good example of a time when that at least could be what it winds up being used for.

I have a little more pessimistic view of government meddling than you do apparently. As far as I see it, it's only a matter of time before the gov abuses any power it gains, especially in terms of regulation. The only way any governmental authority needs to ever get involved in this situation would be in a lawsuit. I have much more confidence in the private market being able to take care of this kind of issue.

 

[The_root_of_all_evil]

How about not leaving kids with 15 minutes of free time as standard, Apple?

Just a COMPLETELY OBVIOUS AND LEGAL STANDPOINT.

 

[Formica Archonis]

My understanding is that the smurfberries in question can cost around $60 a barrow.

The $99 wagon is the one people are most shocked about.

 

[Sixcess]

I'm not usually in favor of increased regulation of games, but this smurfberry thing is incredibly unscrupulous. If we do end up with another round of legislation it won't be government's fault (this time), it'll be the people developing 'free' kid's games that are dependant on unbelievably over-priced microtransactions.

(although I don't think $60 up could really be described as 'micro'...)