Phonepayplus to Create Rules to Protect App Customers

A UK regulator has discovered cases of rogue smartphone apps that are charging people without their knowledge.

According to an article on BBC News, premium rate regulator Phonepayplus, has set up rules to protect customers from apps that charge a premium rate without their knowledge or consent.

The regulator has designed plans for protecting consumers from rogue traders that can have a huge impact on the mobile app industry.

Phonepayplus has decided to create rules that would make it mandatory for apps to obtain user consent before charging them, strong password protection to prevent children from making the payments and clearer explanations on the cost of virtual credit.

"We need to be nimble and flexible in our approach. We know that the best regulation is one that works collaboratively with industry to pre-empt problems that harm consumers and damage markets," said Phonepayplus chief executive, Paul Whiteing.

"We will not hesitate to use our robust sanctioning powers to drive out rogue providers who could damage a vital part of the UK's growing and innovative digital and creative economies," he added.