There is no denying that in-app purchases and microtransaction has been unregulated and a cause of concern for gamers and perhaps most importantly parents who let their kids play on tablets and smart devices. The OFT (Office of Fair Trade) has now offered up guidelines for the companies to comply with. These guidelines include eight principles and game companies have been given two months to comply with them.
The OFT identified five areas of concern:
- a lack of transparent, accurate and clear up-front information relating, for example, to costs, and other information material to a consumer's decision about whether to play, download or sign up to a game.
- misleading commercial practices, including failing to differentiate clearly between commercial messages and gameplay.
- exploiting children's inexperience, vulnerability and credulity, including by aggressive commercial practices.
- including direct exhortations to children to buy advertised products or persuade their parents or other adults to buy advertised products for them.
- payments taken from account holders without their knowledge, express authorisation or informed consent.
And while some of the practices with in-app purchases from gaming companies are unethical (to put it mildly) the OFT also noted:
"The OFT welcomes the positive engagement by the games industry with the OFT's investigation, and the significant improvements to its practices that have already been made by many firms since the OFT launched its investigation."
Clive Maxwell, OFT Chief Executive, said:
"Many children enjoy playing these types of games. This rapidly growing creative sector has also brought wider economic benefits."
"The on-line and apps based games industry has already made significant improvements during our consultation process. But it still needs to do more to protect children and treat its customers fairly."
"Our principles make clear the type of practices that games makers and platform operators should avoid."
"Parents and carers have an important role to help protect their child and their bank balance. Our advice is that parents check their device settings, play their child's games themselves and read the game's description online. Parents will also be encouraged to report concerns to Citizens Advice."
The Ukie (The Association for United Kingdom Interactive Entertainment) CEO Dr. Jo Twist has responded to the eight principles as follows:
"We identified the issues of responsible in-app purchasing in children's games some time ago through our membership and we've been working closely with the OFT since they first announced their investigation to make sure that they heard from as many games businesses as possible.#
"It's important that we help both the OFT and games businesses understand how new business models should work within existing rules around consumer protection, advertising and marketing because companies want to and believe they are already doing the right thing by their players. Brand trust is paramount to them."
"We need to make sure we balance the opportunity and growth of innovative business models in the industry with sensible measures to protecting players. We are pleased to see the OFT recognise that parents need to be more aware of and use parental controls that are available on devices. Protecting consumers is a shared responsibility across those who make and sell games, as well as parents and carers."
Follow this link for the complete document on OFT's guidelines.