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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.
Thursday, December 04, 2014
BY DEBRA RINGOLD | OP-ED CONTRIBUTOR
How important are institutional and/or program evaluations provided by third parties in selecting a college or university program?
Thursday, December 04, 2014
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
Nothing says startup culture like a ping pong table in the office, lounge or lobby.
Friday, October 24, 2014
How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!
Saturday, December 13, 2014
Checking in with the managing director of Arnerich Massena.
Thursday, December 11, 2014
BY JESSICA RIDGWAY
Lawger upends the typical hourly based fee model by letting clients determine the cost.
Thursday, November 20, 2014
BY JASON NORRIS | OB CONTRIBUTOR
Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).
Thursday, December 18, 2014
BY JASON NORRIS | OB CONTRIBUTOR
The implosion of the energy complex: The best thing for low oil prices is low oil prices.
|A Complex Portrait: Immigration, Jobs and the Economy|
|Woman of Steel|
|Kill the Meeting|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
How sports tourism is driving economic growth and making cities across Oregon a better place to live.
Port of Morrow's business-ready attitude has a surprising global impact.
Through its support of the arts, the Cultural Trust is strengthening the business community.
Heed the morals of these seminal holiday stories in your everyday life.
Amy will practice in the firm's Business, Real Estate, and Tax practice groups.
While the Bend City Council ultimately upheld the approval which enables OSU-Cascades to move forward with the 10 acre site, it did also thoughtfully consider the nature of its code requirements, resident concerns and OSU-Cascade’s efforts and suggestions and crafted conditions of approval to address potential impacts of the site in the area.