Mobile advertising company Tapjoy agreed to reform its business practices as part of a deal with the US Federal Trade Commission (FTC) to settle allegations it failed to deliver promised in-app rewards to consumers which participated in its offers.
The agreement prohibits Tapjoy from misrepresenting the rewards consumers can earn, and requires it to ensure advertisers deliver on what is promised. It faces a penalty of up to $43,280 for each violation of the FTC deal.
In a joint statement, Commissioners Rohit Chopra and Rebecca Kelly Slaughter said the company “amplified false offers by its business partners, who baited gamers with big rewards only to cheat them when it was time to pay up”.
They added this also harmed mobile game developers “who were cheated of advertising revenue they were entitled to”.
Tapjoy’s advertising platform operates within mobile games, offering in-app currency to users who complete activities including purchasing a product, signing up to free trials, taking a survey or providing personal information.
However, hundreds of thousands of consumers complained to the FTC they never received their promised rewards, despite handing over sensitive data or spending “a significant amount of money” to complete Tapjoy’s offers.Subscribe to our daily newsletter Back