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May 12, 2008

A Federal Trade Commission representative warned mobile content providers and mobile advertisers that they need to be clearer about the cost of downloading mobile applications, according to a report from Advertising Age.

Speaking at a mobile forum on wireless devices on Friday, Jonathan Leibowitz, a commissioner with the FTC, said it plans to take legal action against deceptive mobile content providers.

Leibowitz reportedly said that the FTC is particularly concerned with messaging, games and video services marketed to young people since kids are quicker to adopt new technologies and that they are an easier prey for aggressive wireless marketers.

While consumer groups petitioned the FTC to create limits around acceptable marketing and privacy practices for mobile phones, marketers and mobile media companies urged the commission not to regulate the still developing market.

Other concerns raised at the forum include privacy issues around mobile phones, especially around the ability to track customers’ whereabouts.

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Source: Advertising Age.