Regulators around Europe cry ‘Pokemon Stop’ amid contract concerns
MILLIONS of Europeans have caught the Pokemon Go bug. The mobile app’s developers, however, are finding European authorities a bit more difficult to win over.
The game has smashed app download records but consumer watchdogs across Europe are raising questions about the contract customers must agree to before using it.
Pokemon Go’s terms of service waive a player’s rights to courtroom representation as a plaintiff or class action member in favour of binding, individual arbitration, unless the user opts out within a month of the download.
This month’s release of the app — which allows players to hunt cartoon characters in their own backyards — led to a frenzy with consumers and investors. Nintendo, creators of the Pokemon franchise and investors in developer Niantic, saw its market value double in the immediate wake of the game’s release, surging by $17.6bn (€15.8bn).
That boost has been tempered by questions about how much Nintendo will benefit, and whether interest groups will fight to improve the terms offered to its customers.
The game inserts animated creatures into players’ surroundings using real-time GPS data and phone cameras. Niantic’s access to this level of user information has led to security fears, so consumer groups are seeking assurances that users can assert their rights if a dispute ever arises.
The Federation of German Consumer Organisations has threatened to sue Niantic if it does not remove 15 rules from the contract by August 9, saying they violate national data laws.
Within a day of its French release last week, consumer rights group UFC Que Choisir called the game “very curious in terms of personal data, potentially costly, and even dangerous”, also warning parents that their children could easily spend hundreds of euros on in-game purchases.
During its initial US launch, the game incorrectly asked for access to iOS users’ full Gmail and Google accounts, before rescinding the request in an update.
The free app has now rolled out in more than 30 countries — and experts say the contract may contravene UK, French and EU statutes.
The UK’s Competition and Markets Authority — their market watchdog — declined to comment specifically on the game’s contract, but highlighted several rules that would affect agreements.
UK consumer laws limit pacts that hinder rights to legal action or force people to use dispute resolution outside the courts, the agency said. A spokesman was unable to reveal whether it has received any complaints about the app.
The French government’s market regulator said any company whose terms have requirements included on a 2009 banned list could be punished with fines of up to €15,000 and overruled by injunction.
EU laws would also protect claimants. The Pokemon Go rules appear to clash with contract law, rules protecting legal jurisdictions, and a directive on unfair contract terms.