Surely, this won't be abused? Apple introduced a new set of rules to govern auto-renewals on the App Store after the launch of the iOS 15.5 update. Developers will be able to increase subscription prices with the user's explicit consent, instead of asking them to agree to it. The feature allows developers to inform customers that they will be charged more, not require them to opt in to the higher pricing.
When Apple was testing this program last month, it appeared Disney+ customers had been told their price was increasing but weren't asked for their consent. It was confirmed by Apple that the new commerce feature would be great for both developers and users.
It is great for developers. Maybe not so much for users.
Apple believes that it could save consumers the hassle of having their subscriptions canceled just because they didn't see the notification or email that asked them to opt in to the price increase.
The company explained in its announcement on Monday that some services were unintentionally interrupted for users and they had to take steps to resubscribe within the app.
The flip side of this argument is that customers who missed the consent notification will be the same ones who will now have to pay more for their subscription.
Customers who don't keep a close eye on their inboxes, those who keep their notifications silenced or aggregated into summaries using Apple's own notification management tools, as well as those who do, may be included.
There is an argument that this change could allow unscrupulous developers and scam artists to make more money from their victims. Although Apple reviews apps for adherence to its App Store policies as part of its vetting process, it has for years struggled to reign in subscription scam. There are still many apps on the App Store that are using fake reviews to scam users out of their money.
Apple downplays complaints about App Store scams in antitrust hearing
In an antitrust hearing last year, Congress questioned Apple about why it was not able to locate the fraudulent apps and scam, given they were easy to identify. Apple insisted that it had invested millions in security.
Today, subscription scam continues. The new policy change could increase the damage done by bad actors.
Apple built in a few protections to the new program so it can't be abused. Developers can only increase prices once per year. The difference in price can be as high as $5 per period for non-annual subscriptions or $50 per year for annual subscriptions. It must be allowed by local laws.
Users will be warned of the price increase via email, push notification, and a message within the app. If users don't want to pay more, Apple will let them know how to view, manage, and cancel their subscriptions. It's not clear how Apple will police this program to make sure that scam artists aren't increasing prices more frequently than allowed. Hopefully, Apple will keep a close eye on the apps.
The policy may have been enacted to better cater to the larger app developers who are pushing for new regulations that would allow them to collect subscription payments without having to use Apple's own in-app purchasing system. These companies want to control their own customer relationships and manage their own payments, but they need to get the consent of their entire subscription base each time.
Apple's latest change to save themselves the trouble of having to gather consent for smaller price changes is welcomed by some developers, but they are worried about the potential for abuse, which could have long-term negative impacts on consumers.
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