The search giant Google faces a lawsuit claiming it is "unfairly profiting" from freemium games in the Play store that enable "unauthorized charges for in-app game currency without parents' knowledge". Regarding this issue, on March 15th, 2014, Google has updated its Play store with an option that lets users require that a password be entered every time someone wants to buy virtual goods while initiating an in-game or in-app purchase.
The lawsuit has been filed against Google in the U.S. District Court for the Northern District of California by a New York mother, Llana Imber-Gluck, whose child spent $68.95 on the "Crystal" virtual currency in the Marvel Run Jump Smash! game without her permission.
"Google has unfairly profited by marketing free or low-cost games to children and by permitting them to easily rack up charges for worthless in-game currency, by failing to incorporate reasonable controls such as simply requiring the entry of a password," said Shanon J. Carson of Berger & Montague, the attorney representing Imber-Gluck. Berger & Montague represented parents in a similar class action suit against Apple in 2011 which led to a settlement of around $100 million.
By default Google Play requires the user to enter their password to confirm purchases, but this requirement can be switched off. Subsequent purchases, including those made in-app within 30 minutes of the password being entered, do not require further authentication.
Keeping in view the recent events about this accidental in-app purchases, Google is all set to push out a new update to its Google Play store application that will allow users to choose if they want to retain the 30-minute restriction-free purchase window that is opened after purchasing an app. Google update will also allow users to configure the Play store to ask for a password every time an in-app purchase is requested.
Play store has included a "Never" ask for password option too.
Apple was recently settling a federal case involving purchases that kids made without their parents’ permission while playing on mobile apps. It was also revealed that one woman's daughter had spent $2,600 while playing Tap Pet Hotel and that other kids had shelled out more than $500 in the apps Dragon Story and Tiny Zoo Friends. The Federal Trade Commission said Apple will make full refunds for any such in-app purchases, and incurring charges by accident or without parents’ permission. Apple was also asked to change its billing practices to make it more obvious that an actual purchase is taking place during the course of the game or app.
Apple settled the complaint with a payout of a minimum of $32.5 million in customer refunds.
The lawsuit against Google notes that Apple also began requiring a password for every in-app purchase. Google was aware that Apple as its primary competitor, has taken steps to end this practice. But apparently the search giant did not concern about this issue until recently.
The phenomenon has also attracted the attention of regulators in Europe. The EU's European Commission said recently that it wants to investigate in-app purchases on games that can be downloaded for free and that it planned to meet with several consumer watchdog organizations across the EU, along with Apple, Google, and other companies involved in the distribution of apps.
The lawuit against Google alleges that many games that feature in-app purchases "are designed solely to lure minors to purchase Game Currency in order to meet the objectives of the game...Such games, by design, are highly addictive."
These freemium games allows free gameplay but offer in-app purchases that either provide virtual currency to allow players to continue playing, or gaining new characters, items or levels, has become a large trend within the last three years.
Publishers offer the games for free because smartphone and tablets users are increasingly reticent to pay the upfront sums of $10 or over that are traditionally associated with games for other platforms like consoles. But that has meant most have struggled to recoup their investments in game development.
Publishers such as King have found great success with the freemium type, with games like Candy Crush Saga consistently ranking in the top grossing games across multiple platforms, including Google's Play store.
Google was quoted as telling the publication, "We always appreciate feedback and are currently working on new features that give our customers even more information and control over their Google Play purchases."