UK Office Of Fair Trading Consults On Consumer Protection Principles For Children's Online Games And Apps

With more than six million apps currently in existence, the 'appification' of society is increasingly a topic of discussion, and certainly it was prominent at the 35th International Conference of Data Protection and Privacy Commissioners in Warsaw in September. Apps often collect large amounts of personal data and therefore have significant potential privacy implications. Young children are particularly vulnerable in this respect, as they can be captivated by online and app-based games and less aware of potential risks.

In September, the UK's Office of Fair Trading (OFT) reported on its investigation into the ways in which online and app-based games encourage children to make purchases. It is now consulting on proposed principles that the online games industry will be expected to adhere to achieve compliance with consumer protection laws, in particular with regards to children, who often constitute the "average consumer" in this context. The consultation closes on 21 November 2013.

The OFT investigation scrutinised the commercial practices of 38 web and app-based games popular with children and identified the following areas of concern:

A lack of transparent, accurate, up-front information relating to costs available prior to the decision to play or download game Misleading practices, including failing to separately identify commercial intent interspersed in game play Exploitation of children's inexperience, vulnerability and credulity, including aggressive and manipulative commercial practices Direct exhortations to children to buy advertised products Payments taken from account holders without their knowledge, express authorisation or informed consent To resolve these concerns the OFT has proposed the following principles which are intended to apply industry wide:

Information about all costs associated with a game should be provided clearly, accurately and prominently up-front All information about the game necessary for the average consumer to make an informed decision to play, download, sign up or purchase a game should be clear, accurate, prominent and provided up-front Information about the business should be clear, accurate, prominent and provided up-front. It should be clear to the consumer whom to contact in the...