FTC Finalizes Settlement with Mobile Advertising Company over Allegations it Failed to Provide Promised In-Game Rewards

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The Federal Trade Commission finalized a settlement with a mobile advertising company over allegations that it failed to provide in-game rewards users were promised for completing advertising offers.

In a complaint first announced in January, the FTC alleged that Tapjoy, Inc., deceived consumers by failing in many instances to provide the rewards it promised even after consumers completed activities such as purchasing a product, signing up for a free-trial offer, providing personal information (for example, an email address), or taking a survey. Tapjoy received hundreds of thousands of complaints from consumers who said they never received their promised rewards.

As part of the settlement, Tapjoy is prohibited from misleading users about the rewards they can earn and must monitor its advertisers to ensure they are following through on promised rewards, investigate complaints from consumers who say they did not receive their rewards, and discipline advertisers who deceive consumers.

After receiving one comment, the Commission voted 4-0 to finalize the settlement with Tapjoy.      

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