Letter to the Honorable Jon Leibowitz, Chairman, Federal Trade Commission

Letter

Congressman Edward J. Markey (D-Mass.), a senior member and former chairman of the Energy and Commerce Committee's Communications, Technology and the Internet Subcommittee, today sent a letter to the Federal Trade Commission (FTC) requesting more information about possible consumer protection issues related to "in-app" purchases reported today by The Washington Post.

"I am disturbed by news that in-app purchases may be taking advantage of children's lack of understanding when it comes to money and what it means to "buy' an imaginary game piece on the Web. Companies shouldn't be able to use Smurfs and snowflakes and zoos as online ATMs pulling money from the pockets of unsuspecting parents. The use of mobile apps will continue to escalate, which is why it is critical that more is done now to examine these practices. I will continue to closely monitor this issue and look forward to the FTC's response."

The Honorable Jon Leibowitz
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580

Dear Chairman Leibowitz;

According to a report in today's Washington Post ("In-app purchases in iPad, iPhone, iPod kid's games touch off parental firestorm", February 8, 2011), companies such as Apple and Google are offering applicaitons that are free to download but subsequently enable the companies to charge users for products and services after the application has been launched. The article referenced above contains quotations from unsuspecting parents whose children downloaded the free games and then purchased, in one case, more than $1,000 worth of virtual game accessories without comprehending the consequences.

I am concerned about how these applications are being promoted and delivered to consumers, particularly with respect to children, who are unlikely to understand the ramifications of in-app purchases. I also encourage the Commission to pursue measures to provide consumers with additional information about the marketing and delivery of these applications. I request that the Commission assess current industry activities in this area to determine whether they constitute unfair or deceptive acts or practices.

Thank you for your attention to this important matter. If you have questions, please have a member of your staff contact Mark Bayer on my staff at 202-225-2836.

Sincerely,

Edward Markey

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