Parents buying tablets for children urged to look out for hidden costs

http://www.theguardian.com/technology/2013/dec/25/parents-tablets-children-hidden-costs

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Parents of children lucky enough to receive new tablets and smartphones to play with this Christmas have been warned to watch out for hidden costs on games and downloads that have landed some families with shock bills of hundreds of pounds.

With a range of low-cost tablets coming on to the market in time for Christmas, and research suggesting that parents would spend a combined £3bn on gadgets for their children this year, the regulator PhonepayPlus said it was vital for them to understand the cost of accessing digital content. It deals with complaints about firms which charge services to phone bills, including online quizzes and susbcription services, and said parents were contacting it about charges involving children which averaged £147 – more than the cost of some of the latest tablets on the market.

The regulator urged parents to talk to their children about the costs involved in using mobile devices and tablets, and issued tips for consumers to help them avoid nasty surprises. These include looking at the small print when downloading apps and ensuring you know how to unsubscribe from any paid-for service.

Patrick Guthrie, director of strategy at PhonepayPlus, said: "Children and teenagers unwrapping their new phone or their first tablet are excited about the new experiences and knowledge they can open up.

"But young people can be unaware of the costs of accessing some digital content on smartphones and tablets, leaving parents to foot the bill. This advice will help parents have a conversation with their children about their new devices."

Another potential problem area for parents is in-app purchases on downloaded games. These allow gamers to add to their experience by buying extra levels and accessories, but earlier this year the Office of Fair Trading accused developers of unfairly pressuring children into purchasing them. It analysed 38 games aimed at children and found that some included "potentially unfair and aggressive commercial practices" and that "children's inexperience, vulnerability and credulity" were being exploited. Some of these operate via text, but most are bought through accounts with app-stores such as iTunes or Google Play.

Games which are clearly aimed at young players, using characters such as My Little Pony and Smurfs have some extras which cost £70 a time, and some parents have reported receiving bills of thousands of pounds. Guy Anker, managing editor of the website MoneySavingExpert.com, said parents should make sure they protect smartphones and tablets so that children did not inadvertently buy costly extras.

He also called for new rules to protect children and their parents. "It's a disgrace when games such as My Little Pony and others charge £70 a pop for children to buy 'gems'. These 'free' games take advantage of children's confusion between virtual and real money, and some parents' technical illiteracy," he said.

"We need rules that stop bait pricing on games predominantly marketed or targeted at children: wealth warnings both at the start of games and inside app stores to indicate it is an in-app purchase game, and caps put on how much can be spent on such purchases within an hour, which can only be removed by the cardholder."

Justine Roberts, CEO of the parenting website Mumsnet, agreed. "Lax controls on in-app advertising can mean that it's easy for children to run up huge bills in a few eager clicks," she said. "It's a big concern on Mumsnet and, if parents aren't careful, could lead to big bills post-Christmas. The best advice is to keep a keen eye on your child's device settings – switch to Flight mode to disable Wi-Fi and 3G connectivity and keep your password for purchases private."

The OFT has been consulting on a range of principles for games developers to adhere to, which should be introduced early in 2014.

How to avoid big bills:<br />

• Restrict in-app purchases with a password/Pin.

• Protect your passwords. Children are smart – they can remember passwords and Pins. Change passwords regularly and make sure they're always hidden.

• Always supervise your child. Ensure you know what he or she is downloading and any extra costs they may be incurring.

• Use parental controls on your device. Ask your mobile network provider about the financial and parental controls available on your device. On pay-as-you-go plans, for example, you can block certain services.

• Unlink your credit/debit card from your account. When using iTunes, you can purchase vouchers for your account instead of having a credit/debit card linked to it, so you can't automatically purchase a service.

• Ask your mobile provider to cut the bill.

• Look for the price of apps and services – it might be in the small print.

• Don't ignore your phone bill or phone credit – check how much your bill costs.

• Find out how you can leave a service .

<em>Source: Moneysavingexpert.com and Phonepay Plus </em>

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