The average chargeback rate for businesses is 0.5 per cent, and 1 per cent is considered "high". Analysing its own data from 12th October 2010, to 12th January 2011, it deemed children had "spent a whopping $3.6 million" in that single three-month period, but more than 9 per cent of the money was being clawed back by the credit card companies. Ninja Sagaĭespite refund refusals, many parents pursued their claims with the US Better Business Bureau in such numbers that the Federal Trade Commission would typically "red flag" such a company for what Reveal calls "deceptive business practices". And in the instances where children had amassed huge spending - such as $6,500 in one case - Facebook employees were told to deny refund requests, reportedly calling the children "whales", the same term used by the gambling industry to disparage high spenders. Facebook had until 24th January to make some of the court documents - which span from 2010 to 2014 - public.Ĭalling the practice " friendly fraud" and reportedly ignoring some of its own staff's efforts to protect vulnerable users, the children were encouraged to make purchases without their parents' permission, while in other cases, they weren't even really aware that they were spending "real" money at all. District Court Judge to be unsealed earlier this month - Facebook orchestrated a campaign to dupe children and their parents into paying thousands of dollars to maximise profits for games like Angry Birds, PetVille, and Ninja Saga. Facebook has been accused of deliberately targeting children in order to tempt them into making in-game purchases, pursuing revenues at the expense of children and their parents.Īccording to Reveal (via Reddit) - which reportedly obtained court documents from a class-action lawsuit that were ordered by a U.S.
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