I don't play a lot of online games from Facebook. And in the mobile games I do play, I don't usually spend actual money, I've only done it once and it was a willful, deliberate act. I knew I was spending money and the app was quite stringent with its security measures.
However, it has been revealed that Facebook has been doing some shady business concerning online games.
Facebook orchestrated a multiyear effort that duped children and their parents out of money, in some cases hundreds or even thousands of dollars, and then often refused to give the money back, according to court documents unsealed tonight in response to a Reveal legal action.
Facebook encouraged game developers to let children spend money without their parents’ permission – something the social media giant called “friendly fraud” – in an effort to maximize revenues, according to a document detailing the company’s game strategy.
(Image credit: Maik Jonietz/Unsplash)
But the company had discovered that more than 9 percent of the money it made from children was being clawed back by the credit card companies.
In comparison, the average chargeback rate for businesses is 0.5 percent, according to the Merchant Risk Council, a nonprofit that helps businesses manage risk.
Anything over 1 percent would put a regular business in jeopardy with Visa/Mastercard. For FB to get up to in the 9 percent range is outrageous!
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