Parents: it’s 2013, stop blaming Apple for your kid’s $1,000 app bill

41 Comments

Another day, another parent outraged because her kids racked up thousands of dollars through freemium in-app purchases.

This time, the shock of a lifetime went to a mother in Canada, whose seven-year-old twins racked up a $3,000 bill playing SuperCell’s blockbuster free-to-play app, Clash of Clans. She claimed she thought the app was free, and that the boys continually put in her user password to download in-app currency in $99 chunks without knowing better. She was mad at Apple, and wanted them to crack down for “safety.”

Parents: In-app purchases have been around since 2009 — Apple’s no longer at fault for your children spending your money.

The unwitting purchase of in-app currency through freemium games was a thing back in 2010 — our own Kevin Tofel even experienced sticker shock. A class action lawsuit for parents was filed in 2012, but by that time Apple had already introduced a purchasing barrier in an update to iOS 4 that required re-entry of passwords for purchases. Three years ago, outrage was reasonable, but now it’s ridiculous.

To put it simply: nowadays, free mobile games are never really free. Research by Flurry indicates that 90% of apps in the iTunes app store are free to download, and that more users are likely to download a free app than a paid one. In order to obtain a steady revenue stream, apps rely on both ads and in-app purchases — the latter is common in games available in app stores today.

And that plan is lucrative. According to app analytics company Distimo, in-app purchases generated a record 76% of all revenue in the Apple App store in February of this year, and 71% of that revenue was generated by free apps with built-in in-app purchases.

Free-to-play games are so successful that major companies like Electronic Arts have moved smash franchises like Real Racing and Plants vs. Zombies to that model because it often means higher revenue in the long run than a $3.99 one-time purchase. It allows mobile companies to survive and thrive without the $30 to $75 one-time purchase of console games, and to make more games in the long run.

Parents, it’s time to expect that your child will be bombarded with opportunities to pay for shortcuts when playing free-to-play games. Freemium apps aren’t for tricking people — they’re an effective economic model for an adult user base. If you don’t want your child to purchase in-app, parental controls that cut off purchase power in apps have been available for both the iPhone and Android for years.

If you can’t handle that, then mobile games aren’t the best form of entertainment for your kids.

41 Comments

Bwesson

Most gaming apps have a 99$ in game feature. By charging that they are saying these abilities on this cheap and relatively small game is worth 100Usd. Are you kidding me? It is a scam. Most parents wouldn’t believe that it would even exist because what game on the App Store is worth more than 10$? The only people who buy it are kids who don’t understand the concept of money. Would you spend 100 real dollars to get the best bike on a 99c dirtbike racing game? HELL NO… Who do you think makes almost all of these purchases? I can tell you it’s not your average independent adult.

kes_

Another IT person blaming the user because they didn’t dig through menus to find a feature.

Amy

I’m not IT

1) tap on settings (the gears)
2) Tap on General
3) tap on restrictions
4) enter your 4 number passcode
5) scroll down to in app purchases, change it to off
6)change require password to immediately instead of 15 minutes

Where you are there you can disable explicit content, limit the purchasing of movie and TV shows based on their ratings.

Don’t blame Apple people you don’t know how to use your device.

Gabe Stein

Let me get this straight: Apple’s “bad user interfaces” are responsible for your pre-literate kids figuring out how make in-app purchases? Hrm…

guest

“Freemium apps aren’t for tricking people — they’re an effective economic model for an adult user base.”

There have been countless articles and few good ones just recently detailing all the psychological trickery involved in the freemium business model.

Google: “Coercive Monetization” and “Monetizing Children”

It is all about trickery.

Ben T

Simple:
1. Don’t give your password to your kids.
In all cases, the parent is giving the child the password.

Second, option:
2. Turn off In-App purchase altogether.

As one that has been developing Apps for all demographics for a few years now, 90% of parents want the world – console quality graphics, hours of gameplay, localized voice-over so they don’t have to help their kids (essentially a babysitter), educational on some level, but don’t you dare ask them for $1 because that’s outrageous for a “game.” It better be free and don’t even think about Advertising or In-App purchases in a “kids” App – and what defines a kids App is very subjective – basically anything that resembles a cartoon character.
Somehow the new thought is paying for a carriers minutes/data plan means all Apps are included.

At least there’s still a percentage on iOS that still pays. In the Android world, they’re virtually nonexistent.

You can’t have it all. Somebody has to pay to create and support these. And adding more walls to payment won’t help for those few that want to legitimately buy.

Peter H Pottinger

its 100% apples fault, I could develop a method for preventing any unwanted iaps in about 30seconds but apple consistently enables their customers to unwittingly purchase content and simply passes it off as an “oops”

p.s. apple contact me if you arent a stinking corporation just waiting for your users to lend their phones to 8yr old kids who have no concept of credit or money, virtual or otherwise.

Me

You can have your password set up to ‘immediately’ apple has done their part. It’s up to parents to do theirs.

Amy

1) all apps are added to the store by the developer. They are the ones who set in the prices of in apps. If you look up an app in the store you can easier determine if it offers in apps.

2) the TOS states you need to be 13 years old to use the iTunes Store.

3) You do not need to have a payment method on your account

4) you can easily set it up so your password is required for every purchase, not just every 15 minutes.

5) you can just as easily disable in app purchasing from your device

6) in apps are available on games on droids etc, it’s not exclusive to the App Store

Care to explain how in app purchasing is even 1% Apple’s fault??

Ola Rynge

Oh, and by the way – you as a parent are always responsible of what your kids do, but that does not remove the responsibility of Apple (and others) to create products that are user friendly and social responsible.

Ola Rynge

Thank you for the feedback on my comment – I learned that the itunes store allowance program exist, which is great. Last time I signed up for an apple-ID I had to verify my country by adding a credit card, but that to might have changed.

However, the main point of my comment is what Techpotato is writing – there is a great need for better user interfaces. Normally if someone explains something really technical, the recommendation are to explain it like if you where explaining it to a five-year-old, which is what Apple (and other developers) should do, especially if they allow content directed to that age group.

ceruleanstarshine

Whatever happened to them monitoring the kids, anyway? My daughter plays free apps, with in-app purchasing, on both my husbands and my iPad and iPhones. Our solution? We have in-app purchasing locked down. In order to download anything to our phones/iPads, we have to enter the password. She doesn’t know our password, and neither does our almost 16 year old son.

It is not Apple’s responsibility to parent their children, it is their responsibility. I hate how it seems like the majority of the parents now want everyone else to take responsibility for their children’s actions–the schools, teachers, app companies, their phone provider, the App store. Give me a break. Supervise them, monitor what they are doing, and put parental controls in place. They are there for a reason!!

Cold Water

Lure users in with the promise of free candy, then for an additional fee, they’ll let you eat it. But this is about much more than the bait and switch.

That free game is a Trojan for all kinds of commercial pleas. Yes, it can make your kids want you to buy them upgrades, but it’s also able to bombard them with ads, sorry, “push notifications” pleading them to buy the sugar cereal app with the Kung Fu grip. Even PAID apps are doing this.

Apple insists on trapping its users in a beautiful walled garden, with certain areas of the system, certain functionalities are OFF LIMITS in this model for an ideal consumer experience. Steve promised “freedom from porn” (a quote), but soliciting money from kids and taking a handsome 30% profit from their idiot parents… why not?

Techpotato

This article represents a lot of what’s wrong with the tech industry.

As a professional who deals with training the general public on how to use their tech I can tell you that the majority of people are hanging on by their fingernails when it comes to their tech.

They don’t have a clue what in-app purchases are, what settings are ( yes – they don’t knew what the gear icon does), or what double tapping the home button does.

People pay me to set them up with an email account and they are happy to do so because it is so confusing. My business cards have a cheat sheet of ctrl-a,z,x,c,v and cmd-a,x,c,v,b on the back and so many people thank me for such a useful tool.

They have unsecured wifi because they can’t figure out how to connect their computer, and when I show them right-click it’s as if I showed them the secret behind a Copperfield illusion.

There is NO WAY that these customers can navigate the nuances of keeping their kids from doing in-app purchases for the same reason that they don’t know how the 15 toolbars and McAffee Secadware got on their PC.

Peter H Pottinger

Yup I’m a web developer and 50% of my time is spent simply on making the interface useable for the “layman”, it means

1. making the interface simple
2. hide the complexity but it has to be there in this case preventing iaps if your 8yr old is using the phone

its so friggin simple its almost stupid, but you have to understand apple is a profit driven money making machine, they aren’t in the business of helping their customers but rather helping their shareholders which in many cases devolves to the same thingbut not in the case of protecting children with no concept of money ..

another example of a stinking corp

p.s. multiple accounts on the phone that switch depending on the unlock code. holy shit did that just blow your mind? its a 30yr old concept

Cheweyyy

If you feel your child is old enough to use a device that allows them to connect to the internet (which can be a very unpleasant place for children if they end up in the wrong places), then surely you should also feel they are able to distinguish between free and paid. If they can not tell the difference, then they should not be allowed to use the internet unsupervised (for their own safety), it is that plain and simple!

Bruce

Take away the damn smartphone, and give the kids a ball to play with. Maybe the exercise will do them some good.

DJL

People don’t make mistakes, system designers do. A system that charges people $99 for worthless content, not once but repeatedly, is a scam. Apple should put an end to this for good.

Dan G

drop the iPhone and use a really really dumb phone- problem solved

Jamie Anderson

Well, I never heard of the itunes store allowance program until now. I suspect they aren’t doing much to promote it, much like cell phone companies don’t make it known that you can turno off premium sms services. As a retailer of these apps itunes has a responsibility to make sure that they’re not a con, and clearly some of these in app purchases are.

PG

Lauren,
i’m too tired to respond in kind to this. But you seem to not understand several fundamentals of programming, kids and human computer interaction. What you are championing isn’t a failure of parents, which does happen, but instead some fundamental underlying omissions in the design and implemtation of HCI of the mobile OS design. Which seem to often favour the developer businesses and not the individual users. Lets call a spade a spade, but having in app purchases of +£75/+$100, or the like, has to be balanced against the reality of users and their abilities – or HCI.
It’s time for a sensible debate on this, not lampooning parents that don’t understand the intricacies of embedded and nested control functionality!
PG

Lauren Hockenson

PG,

I understand your criticisms, but Apple’s control over HCI is limited simply to the function of the iTunes Store, not the games involved.

While I agree with you that there’s a level of disingenuousness when gaming developers even give the option for in-app transactions costing $99 USD (which is the micro-transaction cap Apple has on developers), that’s at their discretion and not Apple’s.

What I’m suggesting in my article is that parents need to have the knowledge of what games are out there and why micro-transactions pose a problem, and utilize the tools already in place to make an informed decision. You’re right, kids will never be able to recognize when 100,000 Farm Bucks equals $99 USD. But in that case, just turn it off.

ceruleanstarshine

Exactly! It is not the developer’s responsibility to track what your children are purchasing via the app. They have a goal–make money for the work they put in. You can disable in-app purchasing or require it to have a password.

Lauren, I think your article is spot-on.

PG: In response to your comment, “not lampooning parents that don’t understand the intricacies of embedded and nested control functionality!” this is what I have to say:

If the parents do not understand the intricacies of the control functionality, they shouldn’t be using the device at all, let alone handing it off to a small child to play games on. Parents have a responsibility to understand the nuances of the technology they are equipping their children with, and that includes devices that allow in app purchasing and game play. Additionally, the iPhone/iPad and many other devices all come with instruction manuals. If they don’t, there are manuals and how-to-use tutorials online for free, all over the internet. The knowledge is out there, it is the parents fault if they don’t look for it to inform themselves and protect themselves and their children.

Stefano76

As software developer is a crime to sell games for 1$, ether via in-app or as natural cost of the app. 99$ are a way from which, so often, rich people or truly engaged users want to say thanks: 99$ is the right cost considering that more than the 95% of the users usually do not pay at all for a free game. The 99$ option is like a “donate” button.

noahlach

Here’s an idea, set up Parental Controls so that in-App Purchases are disabled or, even better, DON’T GIVE A LITTLE KID YOUR iTUNES PASSWORD.

Ola Rynge

Even if I haven’t been a victim of in app purchases, I still think Apple are partly to blame since

1) you need to attach a credit card to your Apple account.

2) you need to enter your password to download any app (free or not) which makes it hard, nearly impossible to not disclose it to your kids.

Apple could

1) remove the requirement of having a credit card on file

2) let the user specify a daily/monthly limit for the credit card on file

3) add levels of security, eg. one password for downloading free stuff and another for paid stuff

There are a lot that Apple still has to figure out when it comes to great product design, it is not just a glossy device and nice OS – usability could be much better.

grod79

Oh please…why is it Apple’s responsibility to prevent a child to not buy in-app purchases? How about you be an actual parent and tell your kid(s) to not do it. I blame parents for not disciplining their kid(s) and letting them get away with murder. What is a kid doing with an iPad/iPod/iPad anyway? Kids are supposed to be outside and playing with their friends and getting dirty, scraped up and enjoying their childhoods. Not cooped up inside with their face buried in a mobile device.

Lauren Hockenson

Ola,

I know that Apple requires you to have a credit card on file, but it also does exactly what you say. It’s called the iTunes Store Allowance Program: http://support.apple.com/kb/ht2105.

If a child is independent enough to have his or her own device, the iTunes Allowance program not only allows for a monthly sum to be given for purchases and downloads, but it also allows management via a separate dashboard.

If a child is not independent enough for those things, then parents run a clear risk by allowing them access to key username passwords and not blocking in-app purchase controls. It’s key for parents to not only understand the mobile climate at large, especially when it comes to free games, but to also make the final decision on the kinds of games their children play on mobile devices.

Nyla

Ola,
Apple does not require credit cards on file. I don’t have one on file, I just purchase $10/$15 itunes gift cards for me and my family members. Problem solved.

Michael

On Ola’s points.

1. You do not need a credit card or an iTunes card to open an iTunes account. There is a third option of organising payment methods later. The account is opened with no credit.

2. Just ask your children to look away when putting in your password. That’s what I do. Also change your password regularly.

“Apple could”

1. See above.

2. Don’t see a problem with this, though I doubt many would use it. I could be wrong.

3. Just another unneeded level of complexity. Also, if you can’t hide one password from your kids, you probably can’t hide two.

Cold Water

It limits the damage, but only until you top up again. That’s neither convenient nor a solution.

Frank

1. You can remove your credit card from your iTunes account.

2. You can setup accounts for your children with an allowance that has limited funds and is not connected to a credit card.

3. Using parental controls you can turn off in app purchase.

4. You can put in your password for your kids instead of telling them what your password is.

Apple has done all of this and you still want Apple to be responsible. How about parents get off there ass and be parents and take resonsablity for what there kids do.

Tipton Stiehmay

You don’t need to attach a credit card to your iTunes account. I only use iTunes gift certificates for my kids account. You can also setup monthly allowances. My 7 year old doesn’t know the password to his account, I enter it when needed so I can control what he does in the app store. That’s means that he has to wait until I am available and I agree to the purchase before he gets anything.

Apple has given parents the amount of control needed to manage their children’s iTunes usage. Parents need to use the tools they have.

Me

First you can remove your credit card. You can add a gift card or add a monthly allowance. Don’t forget you can add the restrictions on your device right away. Parents should read up before giving their children access to their device. Developers add the apps on the App Store.

Amy

You do not need to have a credit card on your iTunes account.

You can set in app restrictions on your account which prevent in app purchasing. The steps are right in the terms of sale. You can also set it so you need to enter your password for every purchase.

So here is an idea. If you are spending the money to purchase an iOS device read up on how to use it. And don’t like your 4 year old pay with it.

John

Apple does not require a credit card on your account – just go into your billing information and set credit card to “None” – it’s that easy. You can use iTunes Gift Cards, or re-add and remove your credit card when you want to purchase.

Add levels of security- they’ve done that. go into settings, set up restrictions. It adds a second, separate password that must be entered before the restrictions can be removed – you can restrict any or all content types, including in-app purchases.

Let the user specify a daily-monthly limit – that exists too! Just have your kids set up their own account without a credit card – you can then use your account to create a monthly allowance – it charges the card on your account and sends that amount as store credit to your kids account.

Your lack of research into the options is not Apple’s fault – they have online walkthroughs that go through all of those options and explain them. But each and every suggestion you made has been implemented by Apple years ago.

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