FTC operates an promoting community that has not obtained any rewards in recreation for cost or private data
As reported on the Hunton Retail Law Resource blog, the Federal Trade Commission has settled charges against mobile advertising company Tapjoy, Inc. on allegations that the company did not receive promised rewards in exchange for completed activities such as paying funds or disclosing funds Granted sensitive personal information or registration for “free trial” marketing offers. The FTC’s agreement, unanimously adopted by the agency’s five commissioners, calls for Tapjoy to be more prominent about the terms of their offerings, more closely monitoring consumer complaints, and more closely tracking advertising partners who deliver (and don’t deliver) promised rewards.
Democratic Commissioners Rohit Chopra and Rebecca Slaughter issued a separate statement using the Tapjoy settlement as an opportunity to discuss the broader mobile gaming market and their belief that more robust FTC enforcement is needed in the area. The Commissioners state that limited competition at the forefront of the mobile game market – coupled with its explosion in popularity in recent years – stifles innovation and prompts developers to search for new and harmful revenue streams as powerful players and smaller ones grow Middlemen like Tapjoy engage in extractive rent-seeking behavior. The statement hints at the rise of loot boxes that “turn video games into virtual casinos” and in-game surveillance to enable “intrusive behavioral advertising” as options that developers have chosen as alternative monetization models.
The separate statement, along with Commissioner Chopra’s approval of changes to the energy labeling rule, concludes with a call for wider enforcement action by the FTC to protect consumers, and reads: ‘When it comes to addressing the deeper structural issues in this market that both threaten players and developers, the Commission must use all of its tools – competition, consumer protection and data protection – to tackle the middlemen’s calamities, including those of the biggest gaming gatekeepers. “