in app purchases

Legal risks inherent in the In-App Purchase business model

In the post smart phone environment, software developers and publishers are increasingly providing end users (Users) with the opportunity to make micro-transactions (In-App Purchases) within their software (App). Under this business model, the publisher or developer offers their App, or at least a limited version of it, to consumers at no upfront cost. Users then may have the opportunity to make In-App Purchases using real world currency, such as:

  • a one off fee to access an advertisement free version of the App;
  • access to additional content within the App;
  • a digital currency for use within the App; or
  • consumable items such as extra lives or turns in games.

The In-App Purchase model has proven successful for many publishers, but as with all business models, it comes with its fair share of legal risk. [Read more…]

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