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#Post#: 95--------------------------------------------------
"Friendly fraud": Documents show Facebook used games
to make money off of kids
DIR By: Satanica
Date: January 25, 2019, 8:49 am
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HTML https://www.cbsnews.com/news/facebook-used-games-to-make-money-off-kids-court-documents-show/?ftag=CNM-00-10aac3a
--- Quote ---
>
> After a series of scandals, Facebook is under fire again over
newly released documents that show an apparent pattern of
exploiting minors for their parents' money. More than 100 pages
of documents released on Thursday night, part of a 2012 lawsuit,
show that Facebook was aware children spent large sums of money
on game apps without parental consent. The suit alleges the
social media giant made it difficult for parents to get their
money back.
>
> Glynnis Bohannan let her 12-year-old son use her credit card
to play the game Ninja Saga on Facebook, but the initial fee of
$19.95 mushroomed into charges totaling nearly $1,000. Bohannan
was shocked when she opened that bill.
>
> "I wanted to know what my son was doing because I told him it
was only a one-time transaction. He's like, 'I'm not using your
card,'" Bohannan told CBS News' Carter Evans.
>
> What he didn't realize was that Facebook had stored his mom's
credit card and was charging it as he played the game.
> [....]
> This practice was widespread, according to newly released
court documents. It was known at Facebook as "friendly fraud,"
meaning a minor was using the app on a parent's or grandparent's
account. Bohannan filed a lawsuit after finding it impossible to
reach Facebook for a refund. The case ultimately grew into a
class action suit.
>
> "There's no way that they didn't know these transactions were
originating from Facebook accounts that were assigned to
minors," said Bohannan's attorney John Parker.
>
> Newly released internal emails filed in court show that in
2012, Facebook analyzed refund requests on another game, Angry
Birds, and found that more than 90 percent were because of
"friendly fraud." It said that "in nearly all cases, the
parent... didn't think the child would be allowed to buy
anything without their password or authorization first."
>
> One deposition shows Facebook employees were reluctant to
reduce this "friendly fraud" because it would likely also reduce
the company's overall revenue. According to court documents, the
company calculated that between 2008 and 2014 minors under 18
made purchases on Facebook totaling more than $34 million.
>
> "I think it was all driven by greed and money," Bohannan said.
"I felt this could be a family's rent or the car payment, or
their grocery money, and that this was wrong."
>
> Bohannan's case was settled in 2016. In a statement, Facebook
said, "we routinely examine our own practices, and in 2016
agreed to update our terms and provide dedicated resources for
refund requests related to purchases made by minors on
Facebook."
>
> After what she's been through, Bohannan wants others to know
that they should be careful.
>
> "They've changed some of their practices but initially when
they went into buying and selling things on Facebook, they
didn't have proper, safe practices."
>
--- End Quote ---
#Post#: 98--------------------------------------------------
Re: "Friendly fraud": Documents show Facebook used
games to make money off of kids
DIR By: KatO9Tails
Date: January 25, 2019, 9:03 am
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I didn't spend that much on the games but alot of people would
and I can imagine how that would add up. In some games it would
be the difference between life and death in the game so at the
beginning levels I would try and enter and stay in the
tournaments and kill everyone for the same bling items to stay
on the leader boards. Anyone else with the money could get 10
times the amount of special powers by buying them which was bunk
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