Spring Gift Fair 2014 Magazine

THE COMMERCE COMMISSION

Retail Crime, Protect your business

Commission reminds consumers to watch out for in-app purchases The Commerce Commission has taken the lead in reminding consumers about the potential to accidentally make in-app purchases when using applications (apps) on their mobile devices. “With the proliferation of children using this type of technology in their normal school day, it is a good time to remind parents to keep an eye on the apps that their children may be downloading,” said Ritchie Hutton, Commerce Commission Head of Investigations. “In-app purchases can add up quickly and lead to significant costs.” Consumer protection organisations overseas have received a large number of complaints about in-app purchases, which has resulted in some positive changes in how mobile platform providers advertise apps. As a result, many apps now disclose that they contain in-app purchases. Apps are often free to download but many require in-app purchases to maximise the experience of the app. These purchases may include paying to avoid a delay in gameplay, buying upgrades or buying extra content. Offering in-app purchases in free to download apps is a very successful revenue making model and has become widespread. For example, during June 2014, 47 of the 50 ‘Top Grossing’ apps on Apple New Zealand’s iTunes store were free to download. Consumers, particularly children, may not understand that buying in-game currency and other in-app purchases require the payment of real money. “In-app purchases are often displayed in ways that have been specifically designed to maximise the chance that a consumer will take up the opportunity to buy. This practice is particularly evident in children’s games where children are often faced with repeated prompts to make a purchase,” said Mr Hutton. Many consumers are also unaware that in some cases, once you enter your password to download an app from the app store, the password stays live for a period of time. This means that if devices are then given to children, they can make subsequent purchases without parental consent. The good news is that anyone can change the settings on their devices so that the password must be entered every time. There are also ways to restrict the purchase of in-app purchases completely. The Commission has the following tips for consumers to reduce the risk of running-up unexpected bills on their mobile devices. 1. Check apps for in-app purchases When downloading an app, especially free ones, check for information on what features the app has, including in-app purchases. This information is usually now made clearer for consumers. Look for the words “Offers in app purchases”. Apps sold in Apple’s store have lists that set out each individual in-app purchase and the maximum price you can pay for a single in-app purchase. Check reviews of an app online before downloading it, for other users’ experiences and opinions.

2. Change your password settings Check how long the default time is that your password will remain active on your device once you have entered it. For example, the default settings on some devices have a 15 to 30 minute password window where you don’t need to re- enter your password for additional purchases. You can remove this password window in your device’s settings. Your settings may change depending on what version of software you have installed on your device so it pays to check when you upgrade your software. 3. You can turn off in-app purchases Most devices have the ability to stop any in-app purchases. Check your device settings. 4. Check your bill regularly Check your app store bill regularly so you know what purchases are being made on your account. 5. Don’t share your app store password with anyone, including children If only you know your app store password, you will know when your credit card is being charged. Just remember to also change the default setting for how long your password remains valid after the first time you enter it. 6. You do have rights If you do end up in a situation where in-app purchases have been made without your knowledge or permission, you can apply for a refund from your app store provider. If you come across conduct you believe may be misleading or deceptive under the Fair Trading Act, let the Commerce Commission know by calling 0800 943 600 or visiting www. comcom.govt.nz. Background Here are some useful links for information on how to manage your mobile device settings and contacts to seek a refund. To change your restrictions On Apple devices: http:// support.apple.com/kb/HT4213 To change your password settings Apple password settings: http://support.apple.com/kb/ht6088 Google password protection: https://support.google. com/googleplay/answer/1626831 Microsoft My Family: http://www.windowsphone.com/ en-us/How-to/wp8/apps/my-family-on-the-windows- phone-website Contacts for refunds For in-app purchases on Apple

1. Clearly define entrances and exits Monitor who comes in and out Restrict access to hiding places/escape routes Secure access points Light outdoor areas well 2. See and be seen Keep shelves low and create gaps Use mirrors to see blind spots

There are many ways you can prevent crime affecting your business by using simple, effective crime prevention techniques such as safe cash handling techniques and focusing on your shop layout. Handling cash safely Vary the banking time each day Don’t carry cash in a bag that has a bank logo Use adult staff to do the banking (preferably go in pairs) If driving, lock the vehicle doors and use different routes each day If walking to the bank, take the most direct route Carry a mobile phone and be alert of other people and vehicles Shop displays and layout for crime prevention Keep your front window clear of posters etc Position the cash register near the entry and greet every customer when they walk in. Position shelving in one direction so you have a clear view down each aisle Use large mirrors to see every part of your store Display smaller merchandise closer to the cash register counter, not at the back of the shop. Business safety clips Police have worked with Greater East Tamaki Business Association (GETBA) to provide simple, effective crime prevention techniques through a series of short video clips. You can watch Police officers demonstrate the techniques above, and other easy crime prevention techniques in English or Mandarin Chinese, on the GETBA website http://www.getba.org. nz/video-clips-for-retailers .

Keep windows clear Keep shrubbery low Light outdoor areas well

3. Clearly define the layout Keep the counter near the entrance Secure staff-only areas Keep expensive goods secured Direct customers with clear signs Eliminate hiding places

4. Show your business is cared for Make your premises attractive Keep your shelves clean and tidy Keep paintwork and signs fresh Remove graffiti immediately Clear rubbish regularly 5. Use active security measures Install CCTV inside and outside Get advice before choosing security systems Lock access ways at night Alarm points of entry and exit

6. Manage and maintain your business well Keep minimal cash onsite Regularly secure takings in a safe

Bank at different times and conceal cash Open and empty the till at the end of the day Undertake regular maintenance

7 ways to prevent retail crime through CPTED principles

7. Train staff to be vigilant - eyes on the street Greet customers with eye contact Watch for suspicious activity inside and out Join a crime prevention programme

Developed as part of a Ministry of Justice funded Community Safety Project focused on reducing the vulnerability of the largely migrant retail Burswood precinct to crime. These short video clips provide simple, practical, cost effective steps using international Crime Prevention Through Environmental Design (CPTED) principles. 1.Control access to your business

devices: http://support.apple.com/kb/ht1933 For in-app purchases on Android devices: https://support.google.com/googleplay/ answer/1050566?hl=en

Don’t support crime - report it! Reported crimes are collated by Police Intelligence and drive the allocation of resources and patrols. If you don’t report it the Police don’t know about it. Call 111 if it’s an emergency or there is an offender present Inf rmation provided courtesy of NZ Police and GETBA (Greater East Tamaki Business Association Inc.)

Gordon Irving Commerce Commission Senior Communications Advisor

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