ACCC joins global sweep of freemium apps for kids

The ACCC is joining more than 50 other consumer protection agencies worldwide to conduct an international sweep of mobile apps designed to squeeze money out of children.

The agencies will hunt for applications and games that may mislead children into making unauthorised in-app purchases, or that claim to be free but require significant microtransactions to get the most out of the app.

The crackdown is being conducted under the banner of the International Consumer Protection and Enforcement Network (ICPEN), a group of consumer protection agencies from 54 countries.

The ACCC and other agencies are also leaning on platform operators such as Apple and Google to improve education aimed at protecting consumers from these practices.

The ACCC wants to ensure that parents have knowledge of how to control a device and in-app transactions, and are aware of their avenues to request a refund or dispute unauthorised purchases.

“Games and apps in the ‘free’ area of an online store may be free to download but attract costs for in-app purchases. Some of these apps are marketed for children, who do not connect the game they are playing with spending their parent’s money in the real world,” ACCC Deputy Chair Delia Rickard said.

“I have heard from concerned parents whose children have been caught out with unfamiliar technology and racking up a sky-high credit card bill. A child can unwittingly make one in-app purchase costing $100 or 100 in-app purchases costing $1 each.”

She said a particular area of concern for the ACCC is the ability to make additional purchases without requiring a password for 15-30 minutes after a password-authorised transaction.

Image courtesy of Devon Christopher Adams under CC