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|Monday, July 14, 2014|
BY VIVIAN MCINERNY | OB BLOGGER
Some people think Amazon’s winking eye logo is starting to look like a hoodwink.
On Thursday the Federal Trade Commission filed a lawsuit that could force the amazonian company to refund customers who may have been duped by somewhat sketchy practices. At issue is whether the company billed for in-app charges without the consent of the account holder. How is that even possible? Easy as stealing candy from a baby. Or maybe more accurately, easy as asking a baby if he’d like some candy, and then charging Mom and Pop for the sweet stuff.
Amazon apparently offers several game apps for children. The kids can play for a while for free before being asked if they’d like to purchase additional tokens, treasures or whatnots to continue. Kid presses yes, parents get charged. One parent complained that her young child wasn’t able to read yet, let alone agree to a credit card charge.
It’s easy to wag fingers at the parents for not knowing what their kids are doing on those ubiquitous smart phones and tablets. But did I sit and watch every episode of Sesame Street with my kids? For all I know, while I was making a cup of tea in the kitchen Bert and Ernie taught the tots how to hot wire a car for a joy ride. It may have been parental guilt or embarrassment that allowed the game to keep going as long as it did. When parents complained about bills, some as high as $300, Amazon often forgave the debt and eventually responded to the problem by changing the apps so that when junior hit $20 in charges, Mom and Pop were notified. That sounds like a responsible company response, right?
The thing is, parents are less likely to complain about an unauthorized $19.99 charge. Most probably just suck it up and pay it before deleting the games or making sure their kids fully understand the difference between free virtual tokens and virtual tokens that look, sound and function just like free ones but cost actual money. And while they are at it, they might explain the savings and loan scandal to the tykes.
Apple settled a similar complaint with the FTC earlier this year.
If the FTC gets its way, in the future any and all in-app purchase will require approval from the actual account holder, and not just any pudgy little finger that manages to press a button.
Some of Amazon’s very own employees made similar suggestions to the powers that be, according to the FTC suit. The people working in call centers who had to deal directly with angry customers, I suspect, came up with the solution pretty quickly: If you want to charge customers, it’s probably a good idea to let them know.
No matter who wins the FTC versus Amazon battle, there’s a lesson to be learned. It’s dangerous to get smug at the top. High ranking officers would be wise to pay attention to what those in the trenches are saying. The Brass, the Suits or, perhaps in the case of Amazon, The Cleaner Sweatshirts may understand complex strategic planning, dividend yields and amortization of intangibles but they shouldn’t dismiss the knowledge of their foot soldiers. Put another way, since I’m mixing metaphors like milkshakes, remember that every rung on the corporate ladder contributes to its strength.
If in the future Amazon is required to notify customers of all in-app charges, it is sort of good news/bad news for the rest of us. The good: No surprise bill. The bad? Imagine the melt-downs in restaurants and airplanes when little Noah or Sophia is told no.
Mama and Papa may decide that the magic acorn needed to save the hungry chipmunk or whatever, is well worth another dollar.
Vivian McInerny blogs on popular culture for Oregon Business.
Friday, June 13, 2014
BY CLIFF HOCKLEY | OB GUEST BLOGGER
This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Wednesday, July 02, 2014
BY JESSICA RIDGWAY | OB WEB EDITOR
Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.
Monday, June 30, 2014
Oregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.
Monday, July 14, 2014
BY TERRY "STARBUCKER" ST. MARIE
I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.
Friday, July 18, 2014
BY JASON NORRIS | OB GUEST CONTRIBUTOR
Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”
Thursday, June 19, 2014
BY MONICA ENAND | GUEST CONTRIBUTOR
Nine tips for building habits among employees to respond when needed.
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Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Lane Powell Shareholder Susan K. Eggum has been elected as vice chair of programs and projects for the International Association of Defense Counsel’s (IADC’s) Employment Law Committee.
Geffen Mesher is saddened to announce the passing of long-time shareholder, Tom “Mike” Anderson, who died on July 10, 2014, from liver disease diagnosed after recent heart surgery. He was 55 years old.
Fifteen Lane Powell attorneys have been named 2014 “Oregon Super Lawyers,” and another five attorneys have been named as “Oregon Rising Stars” by Super Lawyers magazine.