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ARTICLE · 09 FEBRUARY 2014

Free app games can cost in the real world

The ACCC warns app providers it will strictly enforce existing consumer laws to protect people from ripoffs and scams.

AustraliaConsumer Protection

More and more people are discovering that so-called 'free' games downloaded to mobile devices can cost a small fortune. Parents are puzzled when charged hundreds and even thousands of dollars from a 'free' game only to discover their child had 'bought' awards in a game in real world money not virtual currency.

Good news. Help is on the way. In the US Apple has had to refund $37 million to consumers to settle a lawsuit brought by the Federal Trade Commission for making it too easy for kids to rack up massive charges on a mobile applications (app) without parental permission. Apple made $10 billion last year from its app store. Apple agreed to modify its practices.

The Australian Competition and Consumer Commission is warning app providers it will strictly enforce existing consumer laws which protect people from ripoffs and scams. It will also bring in new guidelines to cover the growing app industry.

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