FTC to review iPhone in-app purchases following Smurf-gate

According to the Washington Post, the Federal Trade Commission (FTC) will be reviewing the marketing and delivery of mobile applications that charge users for products and services - such as Apple's iTunes store.

This move follows the much reported downloading by an eight-year-old girl called Madison of $1,400 worth of Smurfberries in the game Smurfs' Village, an incident that allegedly put Capcom in hot water with Apple.

Congressman Edward Markey subsequently wrote to FTC chairman Jon Leibowitz asking for in-app purchases to be investigated.

Leibowitz responded: “the practice of in-app purchases for certain applications on Apple iPhones, iPads and iPods raised concerns that consumers may not fully understand the ramifications of those charges.”

He goes on: “We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases. Let me assure you we will look closely at the current industry practice with respect to the marketing and delivery of these types of applications."

In an unrelated matter, the FTC and Justice Department has launched an antitrust review into Apple and its new subscription service. There are concerns that Apple is using its dominant position in the app market to pressure partners.