FTC States The Obvious, Says In-App Spending Is Bad
After suing Apple and Amazon for their in-app spending practices, the Federal Trade Commission conducted an investigation of the issue.
The FTC’s investigation was extremely thorough, according to a press release: “In this new report, FTC staff surveyed a total of 121 different shopping apps across the Google Play and Apple App Stores. The survey included 47 price comparison apps, and 45 in-store purchase apps, which enable consumers to use their phones to pay for goods they purchase in physical stores. Several apps were found in more than one category.”
The report, cleverly titled “What’s the Deal? An FTC Study on Mobile Shopping Apps,” concludes that app stores do not provide enough consumer information about app purchase deals and in-app purchases.
“Based on its review,” the report reads, “the staff found that the apps studied often failed to provide pre-download information on issues that are important to consumers.”
FTC has sued Apple and Amazon over the issue. (RELATED: FTC Sues Amazon Over In-App Spending)
The report will help provide the FTC with a measuring line for future companies they find guilty of violating consumer protection laws. Some speculate Google will be the next in the FTC’s line of fire. (RELATED: Apple Points The Finger On In-App Spending)