Open Sites menu
AustraliaWeather
Kids racking up huge bills on mobile games
Lateline
By Suzanne Smith
Updated June 26, 2013 11:26:21
Video: Parents charged hundreds of dollars for 'free' children's games (Lateline)
Related Story: Inquiry hears tech customers ripped off
Related Story: Australian tech products a rip-off, says Choice
Map: Australia
There is a call for urgent regulation of so-called "free" apps that end up costing parents hundreds of dollars on their iTunes accounts.
In-app purchases, as they are known, were introduced by Apple two years ago. The company makes 30 per cent of every download.
In the beginning the app is free but during the internal game play, children are given the option of purchasing virtual diamonds, coins and other items.
But the cost to the parents' credit cards, linked to their iTunes accounts, is far from fake.
Sylvie, 9, is just one of hundreds of girls and boys who have unknowingly downloaded hundreds of dollars worth of virtual items on their parents' iTunes accounts.
She racked up a bill of nearly $600 over a three-day period with in-app purchases
Her mother, Ann Buchner, is urging other parents to be careful.
We asked ABC readers if this had happened to them, and where the responsibility lies. Read their responses.
"You don't know what is going to happen and you don't know how much money you are going to spend," she said.
"These things are literally kiddie crack, they are totally addictive and absolutely personality changing.
"They tap into a child's natural sense of competitiveness and the whole pleasure and reward system."
She says children have no concept of what they are doing.
"They are effectively being groomed within the game," she said.
"They play these games and to get to do anything meaningful in it, they have to use a form of currency.
"There seems to be a different form of currency, like jewels, and then a pocket full of coins, then suddenly it is also cash.
"You can make different purchases with different forms of currency but the better purchases are done with the currency that actually costs of lot of money.
"The kids don't have any concept of what this is about."
'Confusing' language
It has been described as a "scam" by a commissioner of the Australian Competition and Consumer Commission.
One of the apps that enticed Sylvie to spend lots of real money is called Top Girl.
Australian Communications Consumer Action Network (ACCAN) communications manager Elise Davidson, explains how the game works.
"She can do some modelling jobs to earn money, or go to the club, or simply go shopping," she said.
"She comes in and wants to go to a certain store. It asks you whether you want work chic or seasonal clothes, she chose work clothes.
"When you go to buy an item you simply double-tap. It says 'not enough cash, you need ATM cash', it says 'get some from the ATM', then you hit buy and you aren't sure if it is real or not."
Ms Davidson says the language is quite confusing and it is not clear whether the money is real or not.
When you go to buy an item you simply double-tap. It says 'not enough cash, you need ATM cash', it says 'get some from the ATM', then you hit buy and you aren't sure if it is real or not.
Elise Davidson
"Here we are, 'confirming your in-app purchase, do you want to buy 1000 cash for 109.00 cash,'" she reads.
"A kid of 9 won't understand that is real money."
There are also concerns these games use psychology to create anxiety in children so they want to make purchases.
"If I didn't have enough smurf berries, this little man would come up with an exclamation mark on a little box, and it would say, 'get this for example otherwise the smurfs can't get across the bridge'," Sylvie said.
She says if she did not make the purchase, she thought the smurfs might die.
"I didn't know it was meant to be real money. I thought it was the little coins you have... I didn't know it was real money," she said.
Ms Buchner says she saw Sylvie getting angry and anxious while playing the game.
"What I realised afterwards was that she was being amped up to a level of anxiety because the game was telling her, if she didn't feed her smurfs or animals that they were going to die," she said.
Apple says there are settings to restrict these purchases and they only need to be activated, and it is up to parents to safeguard their iTunes passwords.
Ms Buchner says that is not good enough.
"Apple has designed it so you can have multiple devices with one single password," she said.
"Are we expected to have one password for each device?
"Kids don't have to be rocket scientists to work out the iTunes password. The duty of care should be the responsibility of Apple, not on parents."
One of Ms Buchner's acquaintances, who did not want to be named, was also the victim of credit card shock.
"I allowed my daughter to download what I thought was a free app called Top Girl," she said.
"In a very short time she had spent more than $500 on diamonds, coins and other virtual items.
"Then I discovered there is a 15-minute window once the child downloads the free app. They can make purchases for 15 minutes without entering a password.
"Apple refunded the money but it was a complex process to put restrictions on her iPod and close the 15-minute window."
These addictive games are monetised and all that spells gambling for infants.
Mark Textor
Ms Davidson says Apple could do more.
"ACCAN wants Apple to have all the restrictions already activated on the devices before they are sold - it is then up to parents to turn the restrictions off," she said.
But the anxiety amongst parents is growing, according to the Coalition's chief pollster and strategist, Mark Textor.
"They are games, yes, but they seem to be addictive," he said.
"These addictive games are monetised and all that spells gambling for infants.
"It is one of the issues where there is a realistic expectation that the politicians will do something. It is an example of corporate or market failure where politicians must intervene."
Mr Textor has urged parents to go on a "consumer strike" and refuse to pay the bills.
"It will be very hard for these companies to justify these bills where they are effectively billing parents for the gambling habits of their children," he said.
The ACCC says it is working on the issue with other agencies.
Apple declined Lateline's request for an interview but provided a statement and directed parents to their support website.
With iOS 3.0 or later, you can purchase subscriptions and extra content from within an application using your iPhone, iPad or iPod touch, these are referred to as In-App Purchases. Some examples of In-App Purchases are bonus game levels/maps, additional experience points, subscriptions, and recurring services. To make an In-App Purchase you are required to enter your Apple ID and password.
Full details about In-App Purchases are available to customers to access any time at http://support.apple.com/kb/ht4009?locale=en_AP&viewlocale=en_AP
External Link: Storify: Your thoughts on kids' use of free apps
Topics: mobile-phones, information-and-communication, regulation, consumer-protection, business-economics-and-finance, children, family-and-children, community-and-society, australia
First posted September 17, 2012 23:44:25
'Total deviousness': Witnesses recount 'suspicious' inferno in the Luna Park Ghost Train
'If you're offered it, take it': Government backs AstraZeneca despite blood clot concerns
Germany, Italy, France and Spain suspend AstraZeneca vaccine rollout amid blood clot concerns
CMO says no evidence vaccine causes blood clots
Behind New Zealand's clean, green image is a dirty reality
Amateur investors like Sue have made huge returns in a 'bizarre' market that's left the professionals perplexed
Women wanted to be heard. In reply they had a PM who said they should be thankful they weren't shot (photos)
Chief health officers reflect on 'nasty death threats' and the decisions that left them 'torn apart'
Artists keep finding their work on NFT auction sites — and they never agreed to the sale
Psychology of panic buying and how the pandemic has changed consumer behaviour
Are Brisbane's latest COVID-19 cases a cluster that might lead to community transmission? (photos)
In one photo, Patsy became a lightning rod for anger against the police. She wants to make sure it's 'not in vain'
How this 900,000-litre water tank could help lure Hollywood down under (photos)
Victorian Liberal MP Brad Battin resigns from shadow ministry after failed leadership bid
'Tragic incident': Three dead in San Diego after driver ploughs into tents of homeless people (photos)
Kremlin critic Alexei Navalny posts Instagram update from 'concentration camp'
'An explosion of COVID on our doorstep': Australia urged to help PNG as COVID crisis worsens
Four men in car come under attack as tensions boil over in Sydney's Indian community
Junior doctors launch class action claiming systemic underpayment by public hospitals
Two people charged over assault of US police officer who died after Capitol riot
Hot property market is forcing buyers like Georgia to take risks to buy a home (photos)
Top basketball player charged with assault offences
Myanmar forces kill more anti-coup protesters, as martial law spreads
Advocates hoping national debate will prompt overdue reform of family law system
Chadwick Boseman heads Oscar contenders with posthumous nomination (photos)
If you have inside knowledge of a topic in the news, contact the ABC.
ABC Backstory
ABC teams share the story behind the story and insights into the making of digital, TV and radio content.
Read about our editorial guiding principles and the standards ABC journalists and content makers follow.
Parker on a mission to make Olympic history
By Ahmed Yussuf
Her first fight was at age 13, facing an opponent over a decade her senior — an early indication that Caitlin Parker was to become no ordinary boxer. Now, she's a chance of making boxing history.
The anger, rage and grief is undeniable
By Hayley Gleeson
As a cultural moment, it's undeniably huge, but the question now is: will political leaders take the rage and grief behind these marches seriously?
Canberra octogenarians set relay world record
By Penny Travers
Corry Collins didn't take up running until she was 55. Now 84, she's setting world and national athletics records.
Hidden cost of psychopaths at work
By Benedict Sheehy
Corporate psychopaths cost the economy billions of dollars not only through fraud and other crimes but through the personal and organisational damage they leave behind as they climb the corporate ladder.
Women wanted to be heard. In reply they had a PM who said they should be thankful they weren't shot
Marie regrets having an abortion. Jessie doesn't. But they both experienced grief
This greyhound is listed as 'retired' by the racing industry. It's actually dead
More farmers were killed to cover the tracks of special forces after an accidental shooting, alleges new witness
The 'Quaranteens': What life's like for young Australians who turned 18 in a pandemic.
'Need it done ASAP': NSW Police pushed for Black Lives Matter mural on private property to be removed
How 'the Prince Harry effect' might shape the future of Australian families
HIV support body calls for rethink over COVID public health campaign
Deborah has lived on her 'little patch of paradise' for 13 years, but her home is on uncertain turf
'It's my worst month': Ramadan is a different experience for Muslim businesses in Brisbane
Aged care staff will have to spend 3 hours and 20 minutes with each resident by 2023 under budget reforms
Glossy brochures bloom with photos of working women — but does the budget deliver?
From 'Back in Black' to a trillion dollar debt, is the government's conversion to Keynesianism complete?
Too many young African-Australians are in jail. Some blame police, but the data tells a different story
If your insurance bill is $30,000 per year it's sending a message – don't live there
Why closed borders mean you may finally get a bigger pay rise
The US and China are preparing for war — and Australia is caught in the crosshairs
Here's a riddle: What does a Centrelink recipient have in common with Gerry Harvey?
'They don't like me, and I don't like them': Why the cycle of distrust over Indigenous deaths in custody continues
Gutho's wink a microcosm for NRL rule change cunning and challenge
The US has been lobbing little verbal grenades at China all week. Then came the explosive showdown
Canberra Weather
Sydney News
Melbourne News
Adelaide News
Brisbane News
Perth News
Hobart News
Canberra News
AEDT = Australian Eastern Daylight Savings Time which is 11 hours ahead of GMT (Greenwich Mean Time)
Change to mobile view