The Federal Trade Commission announced a settlement with Tapjoy over the mobile advertising company’s failure to provide promised in-game rewards to consumers. Tapjoy provides in-app advertising for mobile games through techniques including offerwalls—advertising that rewards players with in-app currency for completing tasks like watching an ad or completing a survey.
“Tapjoy promised gamers in-app rewards for completing advertising offers made by its partners, but then often didn’t deliver,” said Frank Gorman, acting deputy director of the FTC’s Bureau of Consumer Protection. “When companies like Tapjoy make promises that depend on their partners’ performance, they’re on the hook to make sure those promises are kept.” The FTC's full decision can be found here.
Tapjoy reportedly deceived consumers by failing to provide in-game rewards promised for actions including purchasing a product, signing up for trial offers, providing personal information like email addresses or taking a survey, the FTC said. As part of the settlement, Tapjoy was ordered to be more transparent and clear about rewards, including the requirements and time needed to achieve the rewards, and follow up with advertisers on any consumer complaints regarding the rewards.
“In accordance with our agreement with the FTC, we will further increase our efforts with advertisers to improve the clarity and transparency of their offers, and we will add enhancements to our offer testing and reward monitoring processes,” Jeff Drobick, CEO of Tapjoy, said in a statement. “Back in 2017, the FTC raised concerns around reward delivery. Over the past 3 years, we have enhanced the rewarding process and customer interaction, and worked to reach a resolution that we believe benefits consumers, Tapjoy’s partners, and our business overall.”