Debate over ‘free’ labeling of apps continues

Debate over ‘free’ labeling of apps continues

The European Union is cracking down on apps advertised as free when they offer in-app purchases, and Google is also implementing changes to address the issue.

The European Union and Google are at the forefront of a movement to change the concept of “free apps,” which have been criticized for misleading young boys and girls who have racked up thousands of dollars worth of purchases on their parents’ credit cards while playing game apps downloaded through Google Play and Apple’s app store.

The European Commission, the EU’s legal entity, has pressed for policy to change how download apps are marketed, issuing a press statement calling for developers to avoid “misleading consumers about the true costs involved,” GigaOm reported.

For its part, Google will label apps differently next month, with the changes seen in EU markets, setting off what GigaOm states could amount to “sweeping change all around the world.”

At the core, the problem with “free” apps is that they are often offered as trial versions and transition to a fully unlocked version after a monthly payment is processed.

The apps require the user to share credit card data sometimes, but the credit cards aren’t charged until in-app purchase prompts come up on the screen of their smartphones or tablets.

“Gamers have even identified what is known as ‘paywalls’ that prevent further progress within a game without the aid of virtual goods purchased via an in-app purchase,” GigaOm reported this week.

Young game players have inadvertently ran up charges of $2,500 on Zombies vs. Ninja and $1,400 on Smurf Berries.

After a number of parents complained, Apple has added additional controls to prevent the charges. According to GigaOm, the regulation of “free” apps in the U.S. may eventually include guidelines similar to those passed by the Food and Drug Administration to regulate food products labeled as “fat-free,” “cholesterol-free” and “sugar-free.”

The Federal Trade Commission has also published similar guidelines for advertising and online commerce industries to regulate “buy one get one free” promotions,” GigaOm pointed out.

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