OFT to investigate free-to-play games
Investigation looking at whether developers are in breach of consumer protection legislation will be published in October 2013
The UK government’s Office of Fair Trading (OFT) has launched an investigation into whether children are being put under pressure to make in-app purchases in contravention of the consumer protection regulations.
The investigation will look at whether apps include “direct exhortations” to make a purchase, or perform an action that would force them to making an in-game payment. Should developers be found guilty of doing so, they will be in breach of the Consumer Protection (from Unfair Trading) Regulations 2008.
SCi understands that it has been prompted in part by reports of children running up huge bills playing free-to-play social games on social and mobile apps, which have been widely reported in the UK press. In one case, a policeman filed an official complaint accusing his son of fraud after the 13 year-old ran up a £37,000 bill playing a number of free-to-play apps on his iPad to prompt Apple to refund the money.
As part of its research the authority will write to free-to-play developers and platform providers, asking for information on in-game marketing directed at children, and is looking for parents and consumer groups to alert it to misleading or particularly aggressive marketing practices. It will publish the report in October this year.
Senior director for goods and consumers Cavendish Elithorn explained that the OFT was “concerned” that children and parents could be subject to undue pressure to make in-app payments which can “run up substantial costs.”
“The OFT is not seeking to ban in-game purchases, but the games industry must ensure it is complying with the relevant regulations so that children are protected. We are speaking to the industry and will take enforcement action if necessary,” Elithorn added.
The investigation has been welcomed by technology and media specialist Vanessa Barnett of Charles Russell LLP, who said the problem was “clearly an economic and social issue in relation to such games”.
Barnett went on to warn against “over prescriptive reform” of current regulations, saying that it could be addressed with “a mix of parenting, education and responsible game design.”
“We need to make sure we balance those out from an obligations perspective,” she continued. “If the OFT ultimately wants more regulation in the area, this could be detrimental to a flourishing, and growing, UK industry.”
Rumours first published in UK newspaper The Daily Mail that the UK Gambling Commission was looking into introducing some form of regulation for social casino titles first emerged in June last year, but have since been denied by the regulator.