Tapjoy settles with FTC over misleading in-app rewards

Anne Freer | January 11, 2021

Mobile Advertising

Tapjoy, the mobile advertising company, has finally settled with the US Federal Trade Commission (FTC) over claims that it had misled customers on in-app rewards in mobile games.

Tapjoy was said to having decided consumers in exchange for in-game rewards like virtual currency but never delivered.

The company provides developers and advertisers with an opportunity to reach consumers in mobile game apps via rewarded ads.

The ruling states that the company will need to monitor advertiser offers more carefully and clearly lay out terms to consumers.

Failure to comply could result in fines of over $43,000 per violation, the FTC ruled.

“Tapjoy promised gamers in-app rewards for completing advertising offers made by its partners, but then often didn’t deliver,” explained Frank Gorman, Deput Director of the FTC. “When companies like Tapjoy make promises that depend on their partners’ performance, they’re on the hook to make sure those promises are kept.”

Tapjoy commented that it was committed to providing a fair and clear marketplace for consumers and advertisers.

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