Need to know
- Over a third of Australians recently encountered an issue with a smartphone app, including being charged for an unwanted purchase or struggling to get a refund
- Children making unauthorised purchases on a parent or carer's account is another common problem
- With customer support from platforms and developers varying widely, CHOICE is calling for your right to app refunds to be made clearer
Every year, Australians spend tens of billions of dollars and days of our time on apps. These tools have become the go-to solution for everything from investing and learning, to dating and entertainment.
But with our spending on these digital platforms and services increasingly funneled towards just a few big companies, it's unclear they're actually offering us good value.
Australia's consumer regulator, the ACCC, recently wrapped up a five-year inquiry into Australians' experiences with accessing and using digital platforms.
"CHOICE was keen to contribute a consumer perspective on these issues by producing original national research," says senior campaigns and policy advisor Rafi Alam.
"We often hear consumer complaints about app stores, such as difficulties getting refunds or even contacting someone for support," he adds.
"Australians spend a lot of time and money on apps, and just like with any other retailer, they expect fair treatment when things go wrong."
Survey reveals key grievances
To get a sense of consumer sentiment, CHOICE surveyed over 1000 Australians between February and March this year, asking about their use of smartphones and the apps on them.
In particular, we probed for any issues they'd encountered with these services and their experiences of trying to get a refund if they'd had an app purchase go wrong.
What was immediately clear was that Australians have chosen their sides when it comes to Apple vs Android.
Forty-eight percent said they only use Apple's iOS operating system, while 47% indicated they've chosen Android. Only 3% of respondents use both.
The most common gripes all involved consumers being charged for apps they didn't want or no longer needed
Over one third (39%) of all those we surveyed said they had experienced a problem with an app on their phone in the preceding 12 months.
The most common gripes all involved consumers being charged for apps they didn't want or no longer needed.
Of those who reported an issue, one in three had accidentally bought or subscribed to an app they hadn't intended to.
Another 32% had struggled to unsubscribe from an app requiring regular payments and 28% had been charged for a subscription to an app even though they had cancelled it before the end of a free trial period.
Kids are causing problems
If you've got a child who has bought an app, signed up to a costly subscription or made an expensive purchase in a game while using your device, you're not alone.
According to our survey, parents and guardians with young children were more likely than other cohorts to have faced some sort of app issue in the last year.
Unsurprisingly, there was a greater chance they had dealt with children making unwanted purchases: 21% of those looking after children younger than 12 reported encountering this issue in the year to March.
For many parents, trying to get a refund on these surprise expenses is another cause for headaches.
"Parents and guardians can have trouble with preventing unauthorised purchases from their children, but they also often have trouble following up these purchases with any kind of redress from the app stores," says Alam.
What to do if you have a problem
So what should you do if your child has bought an app they shouldn't have, or you find yourself trapped in a subscription to an app you can't seem to cancel?
"Unfortunately there's little clarity in the Australian Consumer Law about software-based goods, including apps, and it's not much clearer in Apple and Google's terms and conditions," says Alam.
It's no surprise, then, that 19% of respondents to our survey considered getting a refund for an app issue, but couldn't be bothered or didn't know how.
19% of respondents considered getting a refund for an app issue, but couldn't be bothered or didn't know how
If your child has paid for an app or made an in-app purchase that you'd rather they hadn't, contact the app store where they bought it or the company or developer responsible for the app and report an unauthorised charge.
And if you find yourself stuck in a subscription trap? Again, it's worth trying to raise the issue with the digital store where you originally got the app from.
"Try to access customer support from the app marketplace you signed up to, and if that doesn't work, it may be worthwhile filing a complaint to your state consumer affairs or fair trading regulator," says Alam.
How platforms could do better
Alam says the bad news for consumers seeking a refund is that there "doesn't seem to be a consistent approach" in terms of how app stores and developers respond to these requests.
Some aggrieved consumers were able to secure a remedy, but others were left out of pocket.
"We heard from one consumer who tried to get a refund from an app developer after cancelling a subscription to an app during its free trial period. However, they were still charged and received no response from the developer," says Alam.
Alam says Australia needs to put in place clearer obligations for app developers and marketplaces that dictate where and when consumers deserve remedies and what these should be.
He says we also need an independent complaint-resolution scheme or ombudsman to deal with Australians' app issues.
"Time and time again we see that digital platforms evade accountability," Alam says.
"A digital ombuds scheme could connect consumers to the right regulator, take up their case with the digital platforms including app marketplaces, report on systemic issues they're finding in the market and refer marketplaces to regulators if they discover they've breached the law."
We're on your side
For more than 60 years, we've been making a difference for Australian consumers. In that time, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family.
And you'll never be alone when something goes wrong or a business treats you unfairly.
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Stock images: Getty, unless otherwise stated.