Facebook cracks down on offer providers
It looks like the ban hammer has hit its mark on two of the biggest in-game offer providers on Facebook: Gambit and Tatto Media. Earlier in the month Facebook announced that it had shut down in-game offer providers for some shady and misleading offers, but didn’t name names. This week the social network did. Both Gambit and Tatto Media have been accused of serving up offers in games that have hidden obligations or fees. The reason for the bans, according to an excellent report on VentureBeat, was ” repeat violations of Facebook’s guidelines for offers.”
If you take into account that 30 percent of revenues in the $1 billion virtual goods business are derived from such offers, then this is a very serious matter that needs to be addressed now, because it shows a weakness in that business model. Game providers like Zynga, Playfish and others have started cracking down on these kinds of dubious offers as well – though Facebook has certainly done its fair share of forcing these companies to do the right thing.
Ultimately in-game offers need to be re-thought and refreshed so that users aren’t roped into products and services without knowing what all of the details are. Some examples of this might include a service that doesn’t tell you until it is too late that you have signed up for a lengthy and expensive subscription, or a product that is mailed to you unsolicited with a questionable amount of time to return. At the end of the day players have to ask themselves if the virtual currency they might earn by participating in an offer is really worth the risk and ultimate costs (goods and services they didn’t know they purchased).
You can learn more by checking out this excellent VentureBeat article on the topic.
