Compliance in Mobile Applications: Are you ready for Google Play’s Rejection?

İrem Mutlu, LL.M.

Legal Counsel, Craftgate

Subscription Policy: Hidden Obstacle

In mobile world, legal and compliance considerations that businesses need to address when implementing subscription models should be analyzed with a holistic approach. The importance of maintaining compliance with tax regulations, advertising, marketing and competition laws is talked about more often, however the rules and policies applied by application stores themselves stay in the background, although they are frequently encountered by compliance or legal officers in practice.

You developed a mobile application and are ready to go live. When you want to publish your application on Google Play Store, here is the  Google Play’s Subscription Policy (Policy) that you will be obliged to comply with. In fact, Policy is a hidden obstacle whose existence is not even noticed when fully complied with, but whose importance becomes apparent when the installation of the application is prevented due to non-compliance.

When the subscription policy is examined carefully, it is seen that Google Play has shaped this Policy around a very basic principle: Transparency. All rules determined in the Policy aim to provide transparent information to the end user and to properly inform him/her about the process from downloading the application to its further use.

How to be transparent?

1-    Choose your product type

Google Play makes a distinction based on the product type you offer on the store. If a one-time benefit is desired to be offered to the user, in-app product should be used. On the other hand, if sustained or recurring value to users throughout the life of the subscription is provided, then a subscription product should be preferred. Of course, this does not prevent subscription products from providing incentive or promotional bonuses, but the core value offered must be provided with the subscription, others can only be complementary side benefits. This distinction also aims to prevent one-time benefits from being mischaracterized as subscriptions.

For instance, Google Play shows for an application offering 1,000 gems for the first month, then reducing the benefit to 1 gem in subsequent months of the subscription as a violation of its Policy.

2-    Make sure that your initial information aligns with the user’s expectations

Google Play emphasizes that the continuity inherent in subscription requires accurate and non-misleading statements about what people expect from their initial information. Users should have the information that the subscription will be renewed every month and continue to charge them every month or year depending on the payment plan they choose. The cost of the subscription and the frequency of the billing cycle should be displayed in a way that the user can understand. If the application page only shows the introductory price or monthly price in -for instance - 6-month period, users may not understand what they will automatically be charged at the end of the introductory period or every month.

One of the most significant requirements in the Policy include transparent information about payment. (see “Be sure to inform your users about how and when a free trial will become a paid subscription, the price of a paid subscription, and how users who do not want to switch to a paid subscription can cancel their subscription.”) In the application, if a free trial process is applied, then a separate statement called such as “start your trial” should be displayed and it should show explicitly what happens after the free trial part. Consequently, the explanation of the subscription’s structure in a transparent way is the deciding factor of whether the application is fully compliant or not.

3-    Conscious Choice: Be careful with the language, color, shape and size

The page layouts and components are often designed to manipulate the user to decide in a particular direction in the mobile application world. Since the user experience (UX) and the user interface (UI) designs aim to get more downloads of the application and more subscriptions, Google Play takes related measures, just like in the fields such as consumer law, e-commerce law and competition law.

In the subscription policy, multiple screens in the purchase flow that lead users into accidentally clicking the subscribe button deem to be a violation. Google Play tries to prevent a workflow that misleads/manipulates the user, it aims to ensure that the user subscripts the application by making an active declaration of will with a conscious choice. It should be noted here that the colors, shape and size of the components are critical points for Google Play’s decision. As a compliance officer, your duty will be to show Google Play that when switching between multiple screens, the user will understand the difference between the screens, and that buttons in different colors and sizes are used if necessary.

4-    Don’t Hide Dismiss, Cancel and Refunds Options

Information regarding the management and cancellation of this subscription is equally important as the start and maintenance of the subscription according to Google Play’s policy. User’s cancellation application should be possible within the application where the user can easily see where to access it. In addition, dismiss buttons using on the pages should be clearly visible and users may not understand that they can access functionality without accepting the subscription offer.

Suggestion: Balance between the compliance and the product

Although it is not possible to take into account all the details, the risks will be minimized if the essential principle of transparency is observed. It is indispensable to consider the application stores’ policies progressing through the development and design stages of the application. Implementation of the above criteria will only be possible if compliance and product teams work in cooperation.