Apple’s iOS 4.3 is in the wild, and with it comes some changes to the way in-app purchases are made on iOS devices. In the wake of increasing pressure by parents and the FTC, Apple has included a new feature that requires password entry each time an in-app purchase is made.
iPhones, iPod Touches, and iPads already have extensive parental controls, including the ability to require a password to open certain apps, make any app purchases, and ratings for music and podcasts. However, this created a 15 minute window between when a purchase was made and the password would be required again for any future purchases. The result has been an increasing number of youngsters who racked up large in-app purchases between the time that mom or dad purchased their game and the 15 minute window was up.
iOS 4.3 includes a restriction that requires a password each and every time an in-app purchase is made. “With iOS 4.3,” said Trudy Muller, a spokeswoman for Apple, “in addition to a password being required to purchase an app on the App Store, a reentry of your password is now required when making an in-app purchase.”
But this may not quell the FTC concern. From the Washington Post article:
But some consumer protection experts say Apple’s move may not extinguish concerns by regulators and lawmakers. Linda Goldstein, chair of the advertising and marketing division at Manatt, Phelps & Phillips law firm, said the in-app purchases cut across many consumer protection issues: marketing to children and recurring charges to a “non-traditional billing device.”
Children of many different ages will use iOS devices to play games and other apps, and whereas older children have an opportunity for a teachable moment from their parents regarding the different between virtual and real currency within such a device (indeed, as more and more of our purchasing is performed online and much of it becomes virtual, this lesson is necessary), younger children will still not be able to understand. Restrictions such as have been introduced by Apple are necessary to protect them. As a matter of personal perspective, we feel it necessary to point out that we feel children of that age have no need to spend $99 on a barrel of smurfberries, either.
But stating that a consumer protection issue includes recurring charges to a “non-traditional billing device” has us confused. Why would billing to a new type of device be a matter of protection, we wonder, rather than a matter of education? What would the FTC be protecting consumers from? It would seem to us that consumer education, rather than protection, is called upon here, and that the role of education lies squarely in the laps of the hardware manufacturer and software developers who are utilizing the device, i.e. Apple and apps developers.
Our 2 pennies worth.
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