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Hardware 2.0

Adrian Kingsley-Hughes

Apple's App Store shame

By | November 1, 2011, 6:27am PDT

Summary: Apple, please clean up the App Store in-app purchases.

Overall, I’m very happy with Apple’s iOS and App Store ecosystem. Call it a walled garden or a jail or whatever, I think it’s nice to have a one-stop-shop for apps where you know you’re not going to pick up some nasty malware that’s going to do who-knows-what to my iPhone and iPad. But there’s a seedy side of the App Store I think Apple needs to deal with, and that’s the free games scam.

Take a trip over to the iTunes App Store and take a look at the top grossing games. Notice something odd?

Do you see it yet? Notice how ten out of the top 15 top grossing games are free. Doesn’t that strike you as a little odd?

How does this happen? Well, the trick is that these ‘free’ apps become top grossing thanks to in-app purchases. Now, in general I don’t think that there’s anything wrong with in-app purchases, but the way that Apple allows some game developers to use in-app purchases is utterly shameful and bordering on being scammy.

Let’s take a look at some of the games and what they offer in the way of in-app purchases.

First, Pet Hotel by Pocket Gems, Inc.

A ‘Jar of Treats’ and a ‘Jar of Coins’ each costing $19.99. Really?

Next up, Tiny Zoo Friends by TinyCo, Inc.

A ‘Trough of …’ something for $29.99!

CityVille Hometown by Zynga.

A ‘Barrel of Cash’ for a whopping $69.99! You gotta be kidding me!?!?

Smurfs’ Village by Beeline Interactive, Inc.

A hundred bucks for a barrel of what I am assured are ‘SMURFBERRIES,’ whatever the heck they may be.

Finally, Bunny Shooter Free Game by Best, Cool & Fun Games by Best, Cool & Fun Games - Free Game App Creation S.A.

A free game, but the ‘Deluxe Pack’ is a hundred bucks. Yowza! For comparison, Battlefield 3 is only $60, and you can get $10 off id you download it.

Who are these in-app purchases aimed at? Well, if the Apple support forum is anything to go by, it’s kids. More specifically, kinds who don’t understand that these purchases cost real money. One thread, titled ’Inadvertent $1500 in app purchase Tap Zoo - warning!‘ goes from one tale of woe to another, with people’s kids running up huge charges in a scarily short period of time. And it’s not the only thread of its kind over on Apple’s support forum either.

As I said earlier, I don’t have a problem with in-app purchases in general, especially when they’re vaguely sensible. But tell me, honestly and hand of heart, do you believe that a ‘Deluxe Pack’ for your bunnies or a ‘Barrel of Smurfberries’ to feed your Smurfs is is any way ’sensible’?

I don’t think so.

Developing ‘free’ games aimed specifically at children, and then bundling ridiculously priced in-app purchases inside those ‘free’ games feels scammy to me. Sure, it’s not illegal, and it’s not against Apple’s developer terms and conditions, but Apple is a company that prides itself in protecting users from harm. Most of the game developers do make an attempt to warn users that the game ‘changes real money for additional in-app content’ but it’s a lame attempt. It’s easily missed, and kids aren’t going to read it anyway. And given what I’m reading (and hearing directly from parents) it’s not working.

Note: Apple does seem to be good when it comes to reversing such charges, so that’s a good thing!

Bottom line, Apple doesn’t need the $33 bucks from the sale of a hundred bucks barrel of ‘Smurfberies.’ Apple should be in the business of protecting users from being abused, not putting a mechanism in place to allow that to happen under the radar.

Apple, please clean up the App Store in-app purchases. Maybe put some limitations in place as to what is and isn’t acceptable (if people want $100 worth of ‘Smurfberries, what’s wrong with doing ten $10 transactions?). A ‘free’ that later turns out to have in-app purchases that cost more than a AAA title game is simply crazy and in my mind an abuse of a system designed to make it easier to sell software upgrades and new features.

Just to make it clear, I’m not against in-game purchases in order to buy virtual goods, but when a free game needs to add such crazy purchases, something is wrong. A suggestion might be that Apple limit the value of in-app purchases for virtual goods to a sensible level.

If you regularly hand your iPhone or iPad to someone who might not understand that a hundred dollar barrel of Smurfberries actually costs $100 for real, then you can put in place a restriction to help you. Go to Settings > General > Restrictions then click Enable Restrictions. You will be asked for your pincode (you do have a pincode set, right?) and then scroll down to Require Password and change this from the default 15 minutes to Immediately. This will mean that anyone trying to make a purchase will need to enter the pincode.

Note: If you don’t have a pincode set … well … sheesh … do it now!

Thoughts?

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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I wonder
charles.trumble 12th Apr
I wonder how many of you people who don't see this as a scam, are either developers of these apps or pro bloggers.
..... I know... "what do you mean by "you people"?"
Really......!?!?!?!?!?!?! Really...............????????? Really.
Settings..... I have been an IT consultant for 25 years. At least half of the people that I have done work for can't even change their passwords. Do you mean to tell me that Apple and the app developers don't know this? I don't think that the government should be involved with this. I just think that it is sooooooooo obvious that it is a scam.
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RE: Apple's App Store shame
jmiller1978 1st Nov
How about you also disable In-App purchases from the same restrictions group? If my kid was playing these "free" games on my iTunes account, you can be sure I would have disabled the ability in addition to the restriction you stated.

Most of these games offer these items to speed up the process on an otherwise time consuming game and generate big bucks especially for Zynga. Although, I do have Bunny Shooter and it's actually quite predatory with constant nag screens every other level to check out the in-app store or rate the app and that's after spending $1.99 for the "ad-free" version.
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@jmiller1978 I agree. Being able to disable in-app purchases would be a great option. I doubt we'll ever see it, though. Apple makes a lot of money on these in-app purchases.

As a side thought, it occurred to me that one of the reasons they've started taking this in-app purchase approach is that game companies were having a hard time making serious money on games due to cracked versions of A+ titles being downloaded for free. For some reason, outrageously expensive in-game purchases have become far more acceptable than copy-protected $60 games. It makes no sense, but people generally don't make any sense, when taken as a group.
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RE: Apple's App Store shame
jmiller1978 1st Nov
@BillDem

The option DOES exist and it is in the restrictions. Apple fully allows you to disable In-App purchases. It's been there since at least iOS4 and maybe even in iOS3.
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@BillDem Sure it does. It's all about "try before you buy".
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Why can't the free market speak?
toddybottom 1st Nov
If games are unreasonable (like jmiller above has commented regarding nag screens) then people should rate the game down. Problem solved.

It annoys me that people are constantly trying to shirk their responsibilities to make rational decisions for themselves. Parents have the added responsiblity to make rational decisions for their children as well. That is part of parenthood.

The problem with all of these extra controls is that while they may start off as well intentioned, they quickly end up reaching very ambiguous territory where it does prevent rational people from making rational decisions for themselves.

And as you pointed out, Apple is quite good about refunding these purchases even though they are under no obligation to do so.

You are making a big deal out of nothing for the sole purpose of making revenues of our comments. Why don't you call this one "In App Purchase-gate" since I'm sure that is worth an extra 50 clicks.
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RE: Apple's App Store shame
Rama.NET 1st Nov
@toddybottom
I commented badly on Tap Zoo and gave them no stars because of the same reason. After that they reduced the prices of their stupid jar of coins and jar of stars to 19.99 from 149.99 and I feel both are ridiculous prices.
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@Rama.NET: $149!? Did that virtual crap cost that much before!? :/
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@toddybottom - you appear to have missed the point of the article. These are games clearly and deliberately being *marketed at kids* - kids that don't have money management skills yet and won't learn any from blowing Daddy's credit card limit. It's the same exploitative thinking behind marketing McD at kids and alcopops at young teens (a thankfully now stamped out UK trend).
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RE: Apple's App Store shame
Pete "athynz" Athens 1st Nov
@psdie And you appear to have missed the point of toddybottom's post - it's about responsibility whether it is the adult buyer or the adult owner of the iDevice letting children use it as a gaming device.
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RE: Apple's App Store shame
ItsTheBottomLine 2nd Nov
@Pete "athynz" Athens - Exactly!
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RE: Apple's App Store shame
Rooster6975 2nd Nov
@toddybottom

It is not about Free Market, nor is it about parental responsibility. It is about scamming parents. Period. A responsible parent can check to make sure the app has a G rating (such as Smurf Village), download and install it, and determine that the game is appropriate for children. If they then allow their 4-year old to play it, they are very likely completely unaware that the game manufacturer has exploited a hole in the Apple App Purchase system. The parent must put in their password in order to install the "Free" app, and that stays active for 15 minutes by default. If the child then answers YES to a prompt from the game to purchase SmurfBerries for 99.99, are you arguing that the parents are irresponsible? I would argue that the parents were cheated.
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RE: Apple's App Store shame
non-biased 7th Nov
@Rooster6975 Regardless of if the password is active for 15 minutes or not if a parent lets their kids us a devices that allows in app purchases (we all know iOS apps allow this) without teaching them not to make such purchases then yes, it's the parents fault.
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RE: Apple's App Store shame
appbuilders 1st Nov
There's nothing wrong with this. I'm rollin' in the dough thanks to all these stupid kids - My app makes me hundreds each day wink
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RE: Apple's App Store shame
Rama.NET Updated - 1st Nov
Add TapZoo to that, they have Jar of Stars and Jar Of Coins each for 19.99 (it used to be 149.99) and if your kid by mistake buys that think lion or tiger is cool, you are a goner. I had to fight with Apple without any luck. They take huge amount of stars and coins for just one exotic animal and if your kid wants more exotic animals like lions, tigers, you will see your bill skyrocketing just in few moments. I had to fight for 149.99. And of course now I trained my kids to check the in app purchases thingy before downloading any junk app. They simply follow that rule because they know 149.99 would have given them 3 to 4 Kinect games which could entertain them more than stupid Tap Zoo.
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RE: Apple's App Store shame
WarhavenSC 1st Nov
@Rama.NET ...

Why not disable in-app purchases completely, or restrict it so that it requires you (the parent) to purchase the jar of coins and whatnot.
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@Rama.NET: "They simply follow that rule because they know 149.99 would have given them 3 to 4 Kinect games which could entertain them more than stupid Tap Zoo."
happy
Even though they should follow it for other reasons too, it's good to make sure they understand that there's consequences.
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RE: Apple's App Store shame
non-biased 7th Nov
@Rama.NET And of course now I trained my kids to check the in app purchases thingy before downloading any junk app.
Ding...ding...ding, we have a winner happy
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Legal, but shady.
rlorenz 1st Nov
If there are people out there willing to spend 100 bucks on "smurfberries," then by all means, give it to the developers. Pathetic, but it's called life. From an ethical standpoint, it's totally wrong, but it's not illegal in any way, shape, or form.

If my kid had an i____, then I'd definitely put restrictions on in-app purchases and tell them not to download any of this crap--but who am I to tell others what to do? (I just realized how ironic it is that I'm arguing for freedom in a walled garden.)
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@rlorenz: At least more effort should be made to inform the parents about these in-app purchases.
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You get a game that's designed to be addictive to button-clickers. Those button-clickers get so far into the game, and are forced to choose to buy game points or earn them the hard way (leveling up); also, some in-game items can only be obtained by buying the virtual items with actual money.

Somewhere between 10 and 50% of game players will bite the bullet and pay up for the special items, or to get well ahead of their neighbors. The rest of the people that "play" these games will hold off and do the hard work instead.

And this is why Zynga is worth what it is today.
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@Champ_Kind Exactly - it's an unpleasant business model, but blaming Apple for Zynga's successful model is missing the point.
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RE: Apple's App Store shame
Rooster6975 2nd Nov
@JoshNorton

No, it is not missing the point. If those were adult users playing something like World of Warcraft, fine. If someone absolutely has to buy the "Sword of Greatness" for 8 real dollars, fine. But none of the games above are geared at adults. None of them. Smurf Village, for instance, appeals only to very young children who have no concept of real money. This is a deliberate business model designed exclusively to cheat parents. It exploits a flaw in the Apple App Store where the default setup asks parents to put in a stored credit card number, and then requires a password for the installation of any app, including any FREE app such as Smurf Village. The parent does the responsible thing, checks out the app, finds it is perfect for 4-year olds, and allows their child to play the game. For the next 15 minutes, their password, unbeknownst to the parents, is BY DEFAULT, already entered in any App Purchase window. The child is prompted by the game to buy some smurfberries, and of course, accepts. The parents are charged on their credit card.

It is a complete scam. The game manufacturers know perfectly well that the password is stored for 15 minutes, they also know all of the iOS defaults. They exploit that for illicit gain. Apple needs to change the default on the iOS to require a password for any purchase, but they won't do that because it will lower the number of legitimate App Store impulse buys.
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RE: Apple's App Store shame
PatrickBay.ca 1st Nov
That's Apple for you! I keep saying that this company is shady at the very best of times, and I'm happy that they keep proving me right almost on a daily basis.
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Another consideration...
BillDem 1st Nov
With cash expenditures for "virtual" items skyrocketing, how long do you think it will be before the government starts treating them the same as real goods? How long before we see sales tax charged on your "Axe of Doom" purchase? How long before people start suing these companies (or pressing criminal theft charges) when a software glitch causes their expensive item to disappear? How long before laws are passed to forcefully allow the resale of virtual items because they have real world resale value? I see this trend opening up a vast can of worms. Some of these issues are already starting to appear in courtrooms.
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@BillDem: It's already an issue for DRM'ed music files, but I'm unsure about the precise rules for that. CD:s have always been possible to resell, but iTunes music? Or anything else, really.
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Contributr
RE: Apple's App Store shame
David Gewirtz 1st Nov
Important article. Thanks Adrian.
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RE: Apple's App Store shame
Rama.NET 1st Nov
@David Gewirtz
+1.
password in the first place?
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RE: Apple's App Store shame
Pete "athynz" Athens 1st Nov
@baggins_z Exactly! There is already one built-in deterrent even without enabling restrictions via the settings app on the iPhone - the fact that one has to put in their iTunes password prior to making an in-app purchase! Again - as toddybottom pointed out above it is all about responsibility and if one is dumb enough to give up his or her iTunes password to a child playing a game on their iDevice then it is their responsibility to pay for whatever in app purchases are made.
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RE: Apple's App Store shame
Rooster6975 3rd Nov
@Pete "athynz" Athens

No one is talking about giving up their iTunes password to a child. These games exploit a hole in the iTunes store whereby the password stays active for 15 minutes after you put it in. You have to put it in to download "Free" apps as well, so it is very easy to see how the companies can dupe parents. They log on and search for apps for their 5-year olds, find Smurf Village, download it (put in their password), check it out to make sure it is kid friendly, and then let their child play it. They have been responsible, yet because of that 15 min window, could end up with 1000 bucks on their Visa bill. The apps are also devious. They wait 10 minutes after launch to pop up the first suggestion to purchase "virtual smurfberries", meaning after the parent has ensured the game is kid-friendly, but BEFORE the 15 minutes are up. The child says YES, not knowing this is real money or even what real money is, and that's all it takes.

It is pure deceit, no better than a bait-and-switch scam.
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Why the heck do you give your kid unsupervised access to purchasing power anyway? There's your first mistake. Until they get a job and start making money on their own their access to money should be seriously limited and not made available at a finger press.
not sure what the solution is though...
@doctorSpoc
I remember the big defense to charges that Apple was overcharging for their products was that Apple simply charges what the market will bear.

Why is Apple the only one that is allowed to do this? Why is Windows considered to be overpriced when all MS is doing is charging what the market will bear. Likewise, why aren't these devs allowed to charge what the market will bear?

If children are purchasing these things without the approval of their parents, that is the fault of the parents. It isn't the fault of the devs and it isn't the fault of Apple.

Let companies charge what the market will bear. There isn't anything wrong with it.
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@toddybottom: "If children are purchasing these things without the approval of their parents, that is the fault of the parents."
Only if the parents were aware of in-app purchases. Not all are. If they're informed, sure, it's their own fault.
For those who never knew about the risk? I'd say it's the fault of everybody who *did* know and did not inform them (properly) even though they could. This means primarily Apple and the devs.
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RE: Apple's App Store shame
Rooster6975 3rd Nov
@toddybottom

If there were no deception involved, fine. But the fact is, these virtual items are being purchased because of deceptive practices. Why not make a bucket of smurfberries 1 million real dollars instead of 100. According to you, if a child purchases it, then that must be the going rate the market is happy with.

The point is, the companies are exploiting a hole in the App Store where the password is left active on the iPad for 15 minutes with no notification to the parent at all. That is not free market. That is fraud.
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Quit your whining
AdamDezz Updated - 1st Nov
If you don't like what the game offers, don't play it, it's that simple. They are not doing anything unethical at all, you don't have to play it or buy anything in the game. It's very easy to disable in-app purchases, so the only ones to blame when a kid buys an unauthorized purchase are the parents. Would they give their wallet to their kid when the he enters a toy store?
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RE: Apple's App Store shame
partman1969@... 1st Nov
@AdamDezz
Common sense for sure, but that wouldn't allow the flame wars for all those who don't appreciate Apple.
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RE: Apple's App Store shame
Natanael_L 2nd Nov
@AdamDezz: If you give your wallet to a kid, the risks are much more obvious than when you give a tablet with a game to the kid...
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RE: Apple's App Store shame
partman1969@... Updated - 1st Nov
As good as these examples are, they are by no means locked into any one platform. iOS, Android, PC or Mac all have programs with the ability of in-app purchasing. Lock or disable any abilities for this marketing trend or "PAY" the consequences.
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I can see this happening in Android and WP7/Win8 too, why the heck are the pin codes not required by default?

Someone is extracting the urine, big stylee.
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RE: Apple's App Store shame
trybble1 1st Nov
Here's an idea. Let's get Apple to divert a few dollars of revenue to pay someone to PROOFREAD his "articles"! I think I counted 8 words used in the wrong context just today.
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RE: Apple's App Store shame
redking44 1st Nov
This is true of most if not all facebook games. Buying these coins/berries/horseshoes/whatever the in-game premium currency is doesn't only save time, it is also required if you want premium items for your ...... whatever you're building. I have no problem with the ultra mega truckload of foozlum berries for $99.99, providing the price per berry is significantly less than the $49.99 camel train of foozlum berries, all the way down to the jumbo popcorn bucketful for 99c

That said, I've never bought any, and I don't intend to.
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RE: Apple's App Store shame
claritech 1st Nov
I wouldn't pay $100 for a barrel of smurfberries either. But a "wagon" full is well worth it. It's all economics. I assume you can get more smurfberries in a wagon than in a barrel. Maybe a lot more. I think maybe it's a really big wagon.
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Interesting article, but would be nice if this internationally published author proofread his article.
"A free game, but the ???Deluxe Pack??? is a hundred bucks. Yowza! For comparison, Battlefield 3 is only $60, and you can get $10 off id you download it." id you buy it?
And "or a ???Barrel of Smurfberries??? to feel your Smurfs is is any way ???sensible????" So now we can feel our Smurfs?
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RE: Apple's App Store shame
johnwhiteside 1st Nov
Tempting people with free stuff? It's as if ZDnet provided free content and then bombarded us with ads to pay for it... oh, never mind.

And they provide a simple method of requiring a PIN for in-app purchases, and make it easy to get refunds when there's a problem?

The shame! The shame!
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RE: Apple's App Store shame
aiellenon 3rd Nov
@johnwhiteside
I don't have any ads... try using a redirecting hosts file, a PAC filter and an ad blocker for the web browser of your choice. I don't see any ads on any website anymore.
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RE: Apple's App Store shame
Bill Snebold 1st Nov
Why do parents allow kids to know their Apple ID and password in the first place?
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@Bill Snebold
My kids don't know my password but Apple's default setting is to enable in-app purchases and to keep passwords active for 15 minutes. Download Smurfs, let the kids loose and there's a 15 minute window by default in which my daughter racked up nearly $300 of in-app purchases.
It's not illegal of course but I'm no novice with computers/iPhones/iPads and I got caught. These options really should be set to the tightest restriction by default and the user can choose to relax them if they desire.
I have little doubt that this same issue will arise for WP7/Android in the future and the same standards should apply.
"In App Purchases" should be displayed with the price, at least for any type of game.
There are laws in Canada, UK, Sweden and many other countries not allowing advertising to children, so at least in Canada and these countries they should not be able to suggest in app purchases for games geared toward kids. Apparently, the U.S. government doesn't seem to think that advertising directly to children is a bad thing, since capitalism and making money generally is, of course, more important than ... well anything.
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I wonder
charles.trumble 12th Apr
I wonder how many of you people who don't see this as a scam, are either developers of these apps or pro bloggers.
..... I know... "what do you mean by "you people"?"
Really......!?!?!?!?!?!?! Really...............????????? Really.
Settings..... I have been an IT consultant for 25 years. At least half of the people that I have done work for can't even change their passwords. Do you mean to tell me that Apple and the app developers don't know this? I don't think that the government should be involved with this. I just think that it is sooooooooo obvious that it is a scam.

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