Facebook encouraged game developers to let children spend money without their parents’ permission – something the social media giant called “friendly fraud” – in an effort to maximize revenues, according to a document detailing the company’s game strategy.The memo stated, “Friendly Fraud – what it is, why it’s challenging, and why you shouldn’t try to block it.” “Friendly fraud” is the term Facebook used when children spent money on games without their parent’s permission.
Facebook made clear that game developers should let children spend money even without their parents’ permission.
The company was focused on revenue, not blocking friendly fraud. Its stated philosophy on chargebacks was “maximizing revenue,” according to the memo.
“There is a huge need to educate developers,” Elizabeth Williges, a Facebook employee wrote in the memo. It was sent to the head of Facebook’s payment operations and other employees, including Tara Stewart.
Rather than trying to stop children from making costly mistakes, the document stated that developers should just give free virtual items to users who complain, things such as flaming swords, extra lives and other in-game enhancements.
It's interesting that the do-gooder within Facebook (whose efforts were stopped) was named, but those who opposed her are not. I'm guessing it's not the choice of the article, but rather what's redacted within the source documents.