Charity welcomes OFT move against unfair in-app purchases

The regulator’s recent investigation into the online and app-based games industry found that “some games included potentially unfair and aggressive commercial practices to which children may be particularly susceptible.”

Recent research conducted by pfeg and the British Bankers’ Association (BBA) confirmed the extent to which children are encountering money decisions earlier in life, due in part to the rise of tablets and smartphones. Online research by YouGov for pfeg and the BBA shows that 68 percent of 8-15 year olds have access to a tablet/iPad and of these users, 55 percent have downloaded a paid-for app either on their own or with help on their tablet or smartphone.

Tracey Bleakley, chief executive of pfeg (Personal Finance Education Group), said:

“In-app purchases on smartphone and tablet apps are a growing concern for parents across the country, and some of the examples that have been highlighted are truly shocking. We are pleased to see the OFT taking action to clean up this industry.

“We also need to ensure that children are given the skills and knowledge to help them avoid being pressured into making purchases they don’t need, particularly online. The introduction of personal finance to the new National Curriculum for secondary schools next year will help, but we need to go much further and introduce financial education in all primary schools as well.”

Financial education’s place in the new National Curriculum for England in secondary schools from September 2014 was confirmed by the Department for Education this month. The move follows years of campaigning by the All Party Parliamentary Group on Financial Education for Young People, pfeg and MoneySavingExpert.com’s Martin Lewis. Earlier this year pfeg announced its new campaigning priorities, including extending financial education to all primary schools, as well as to the growing number of Academies and Free Schools not bound to follow the national curriculum.