Thursday, August 07, 2008

I Am Rich...er...Stupid

There has been a lot of speculation around yet another application that hit the App Store and was then removed. "I Am Rich" retailed for $999 and did nothing but sit on your phone. Just a pretty little icon. It was a way to "show your wealth".

Gruber and Kottke both have interesting comments on the subject. Kottke:
What I can't understand is: why should Apple pull I Am Rich from the App Store? They have to approve each app but presumably that's to guard against apps which crash iPhones, misrepresent their function, go against Apple's terms of service, or introduce malicious code to the iPhone.

At this point we don't know if it was the author or Apple that pulled the application.

Why would the author pull it? One thought is from all the bad press it was getting. The App Store is still new enough that new applications are being "reviewed" by bloggers that normally wouldn't touch the subject. Armin indicated in his description of I Am Rich that he would (or did) have other applications available for sale. He may have feared his other applications wouldn't sell as well with I Am Rich tainting his reputation.

One could also argue it was because of Apple's refund policy on purchases from the App Store portion of the iTunes Store. Gruber states:
If everyone who “buys” this app is then demanding a refund or credit card chargeback, you can see why Apple, or perhaps its author, Armin Heinrich, would take the app down.


I have not read through the license agreement that application publishers agree to when submitting their application to the store. One might assume that if a refund is given by Apple on an application purchase that Apple keeps their 30% share and the developer must refund the full amount to the customer. If this is the case there is no wonder Armin would want the application removed. One refund and he would be out $300. But, at this point, we don't know if that is how the process works. [UPDATE: Gruber confirms "that with the App Store, developers pay the refund fee."]

This does bring up another interesting question (which may be answered in the iTunes Store EULA): Are all sales final from the App Store? If not, and a refund is issued, would Apple remove the application from your phone (you got your money back, they get their app back)? We already know Apple has method to remove "malicious App Store applications. Could something similar be used for refunds?

While some say it is the price we pay for having the App Store available on the iPhone, I don't like the thought of Apple being able to remove items I have paid for at any time.

Finally, here is a screenshot of a review from a supposed "buyer" of the app:




Really? I call fake. Either that or stupid. It is not Apple's place to decide if an application is worthy of being on the store. They should vet apps for malicious code and content (porn, etc.) and then let customers decide if they are worth paying for.

6 comments:

JamesS said...

Apple was right to pull it. Even if the app was just a joke and not a scam, one accidental click on the Buy App button and you're charged $999! It's a huge accident waiting to happen. If Apple left it up it might encourage other "developers" to try similar stunts/scams.

M4L said...

Apple has put in place measures to prevent those "accidental" clicks. When I click "Buy App" on the App Store I am presented with a dialogue box that requires I enter my password to my iTunes account to log in. After I type that in and click okay I am presented with another dialogue box asking me if I am sure I want to make a purchase. Lee5279xx turned these warnings off, but that isn't Apple's fault. They can't police that.

Second, Apple does offer iTunes Store customers a recourse by requesting a refund.

One shouldn't "jokingly click" on something that might cost them $999. That's just silly. I'm not saying it was a good app but Apple shouldn't make the choice for us. We should be able to choose if we want to buy it or not.

JamesS said...

M4L, I agree that it's the buyer's fault for clicking that button, but from Apple's perspective there's little reason to allow an app like that. If apps like that are allowed then we may see people turning off 1-Click Buying to protect themselves from accidents. And it's in Apple's interest for 1-Click Buying to be on, as it encourages buying.

M4L said...

So what happens when people start complaining that XXXXXX game is a health hazard because they almost got hit by a car when they were walking across the street while playing and want it pulled?

Apple shouldn't be policing what apps are okay for the store (other than malicious, illegal, etc.). Buyers and potential buyers should be making those decisions (and enforcing them) with their wallets.

That said, I do understand your point that it doesn't add anything to the store. I won't argue that. I just don't think it's Apple's place to make that decision.

Geniver said...

"This does bring up another interesting question (which may be answered in the iTunes Store EULA): Are all sales final from the App Store? If not, and a refund is issued, would Apple remove the application from your phone (you got your money back, they get their app back)? We already know Apple has method to remove "malicious App Store applications. Could something similar be used for refunds?

While some say it is the price we pay for having the App Store available on the iPhone, I don't like the thought of Apple being able to remove items I have paid for at any time."

Does "at any time" include AFTER you have received a refund?

Theoretically, they can't remove it if you remove it first. Is there a mechanism that allows YOU to remove an app from iTunes? I don't know, but I think it would be better for Apple if there was no mechanism allowing customers to remove apps themselves. From the iPhone, yes; from iTunes, no.

If there is no mechanism allowing customers to remove apps from their iTunes account, then Apple needs to be able to do it for them.

M4L said...

Does "at any time" include AFTER you have received a refund?

Yes. I don't want Apple to be able to remove anything from my phone without my consent (I know that they probably can, and I'll still use my phone, I just don't want them to).

Is there a mechanism that allows YOU to remove an app from iTunes?

If you mean remove an app from your iTunes library, then yes. If you click on "Applications" from your Source menu, select the application you want to delete, and then press the delete key you will get a confirmation asking if you really want to delete. You can also drag an application to your desktop and it will copy it there (while still keeping a copy in your library) just as you can with music.

In the Mac desktop software world a 3rd party developer can't issue a refund for a piece of software that a user has paid for and then take it off their computer for them (i.e. remove it without their knowledge). There would be a HUGE outcry on privacy. Why don't we see that here? I'm curious.