Europe motivates Apple, Google to talk about ‘in-app’ purchases

The Western Percentage declared plans on Thursday to deal with one of the scourges of the modern age – activities on tablets and mobile phones that allow kids and grownups to holder up vast bank cards debt by creating “in-app” buys.

After issues were brought up by customer groups in Denmark, England, Italy and The country, the Percentage will hold speaks with the market, policymakers and customer security regulators on Thurday and Friday to consider better guidelines.

The main priority is that activities are often marked as “free to download” but are not “free to play”, with buys instantly debited from a authorized bank cards. More than half of free internet activities in the EU are promoted as “free”, the Percentage says, despite many carrying invisible expenses.

“Misleading customers is clearly the wrong business structure and also goes against the soul of EU rules on customer security,” said the EU’s rights commissioner, Viviane Reding.

“The Western Percentage will expect very tangible answers from the app market to the issues brought up by people and national customer organizations.”

Europe’s “app” market has grown significantly recently as the use of smartphones and tablets has grown, allowing customers to access activities and applications on the run.

The EU market is expected to be worth 63 euros ($86 billion) within the next five years, according to figures from the Commission. Users in Britain, Germany, France, Italy, Spain, the Netherlands and Belgium spent an estimated 16.5 billion euros on online games in 2011 alone.

Many of those playing the activities are kids and youngsters, who often end up asking for fees to the authorized bank cards without recognizing it or without parent approval. Adults often create the same mistake, but must take responsibility.

In one case in England, an 8-year-old girl managed to run up a bill of 4,000 pounds ($6,700) creating “in-app” buys from activities such as My Horse and Smurfs’ Town. In that instance, Apple refunded the woman's father.

“Consumers, and in particular kids, need better security against unexpected expenses from in-app buys,” said Neven Mimica, the Western commissioner for customer policy.

In-app buys can be impaired on most Mobile phones.

Among the suggestions to be discussed are better details in activities about the expenses involved, removing inducements to shop such as “Buy now!” and “Upgrade now!” and preventing payments being debited without precise approval.

The meeting will also discuss whether organizations should provide an current email address that allows customers to contact them immediately with any concerns or problems.

Among the companies taking part are Apple and Google, alongside consumer protection agencies from Denmark, Britain, France, Italy, Belgium, Lithuania and Luxembourg.