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Lawmakers Ask FTC to Examine Google, Apple In-App Purchases

 & Chloe Albanesius Executive Editor, News

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Two Democratic members of Congress this week penned letters to the Federal Trade Commission asking the agency to examine in-app purchases from Google and Apple and whether or not consumers are being unfairly charged.

Rep. Edward Markey of Massachusetts and Sen. Amy Klobuchar of Minnesota cited a Tuesday article from the Washington Post that discussed parents who were shocked to find that their kids were racking up charges via in-app purchases.

In December, for example, Capcom Interactive, creator of the Farmville-inspired Smurfs' Village app for iOS, agreed to post a warning about unexpected in-app fees after one young girl purchased more than $1,000 in Smurfberries, the game's currency.

"I am concerned about how these applications are being promoted and delivered to consumers with respect to children, who are unlikely to understand the ramifications of in-app purchases," Markey wrote to FTC chairman Jon Leibowitz.

Markey asked if the FTC has taken any action regarding in-app purchases, and requested that the agency provide the public with information about how apps work.

"I request that the commission assess current industry activities in this area to determine whether they constitute fair or deceptive acts or practices," Markey wrote.

Klobuchar had similar concerns.

"Consumers have the right to know the true cost of the products and services they are downloading on their smartphones, especially when it comes to applications and games that are geared towards children," she wrote. "As with any new billing practice, there is always the potential for consumer confusion and bill shock, and 'in-app sales' are no exception."

Klobuchar urged the FTC to "consider rules that would add transparency and clarity to the in-app market."

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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