0370 270 6000

Advertising standards agency ruling may hit app industry hard

4 July 2014

The ASA has ruled that an email advertising the Electronic Arts Ltd app ‘Dungeon Keeper’ as free was misleading.

Dungeon Keeper is one of many ‘freemium’ apps. The successful freemium business model allows the app to be used, usually in full, for free, but requires the user to pay to remove limitations.

A recent study found that freemium apps made up 98% of revenue on the Google Play store in May 2014.

The ruling found that, on the basis of Electronic Arts’ advertisement, users would expect to play the app for free without limitations that significantly impact on gameplay. An advertisement must make clear the limitations of free gameplay and role of in-app purchasing with regard to speeding up gameplay.

It will be interesting to see how the app industry deals with this development. They will either need to reduce the limitations on freemium apps, or make the role of in-app purchases clear. For a business model built around drawing users in before charging them, both strategies create challenges.

Related opinions

Are you investing enough in omni-channel retailing and branch IT?

Zynstra, a specialist IT solutions provider, has published a white paper which looks at branch IT solutions for retailers.

View blog

App Providers Respond to ASA Rulings on Freemium apps

Over the last 24 hours the App Store has responded to ASA rulings on misleading ads by making apps that were previously offered as ‘free to play’ now accessible via a ‘get’ option.

View blog

Cyber-attacks on the rise - are you prepared?

A report published today by the Home Affairs Select Committee highlights the increasing number of cyber-attacks made on UK Businesses and Government.

View blog

Limiting contractual liability beware of conflicting insurance provisions

In a case which considered the provisions of the Unfair Contract Terms Act 1977 a project manager, who was sued for losses arising on a delayed project has been prevented from relying on a liability cap, due to the substantial insurance cover that was also provided for in the contract.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up