EU complaint urges action on confusing in-game currencies

Sep 13, 2024 at 2:00 PM

Exposing the Deceptive Practices of Gaming Giants: A Call for Transparency and Consumer Protection

A European consumer watchdog has filed a complaint against major game publishers, alleging deceptive in-game currency practices that mislead and exploit consumers, particularly vulnerable children. The complaint highlights the need for regulators to step in and ensure the gaming industry adheres to real-world consumer protection standards, even in the virtual realm.

Empowering Consumers in the Digital Playground

Obscuring the True Cost of Digital Items

The European Consumer Organization (BEUC) has identified numerous instances where gamers are misled into spending money on in-game purchases. The core issue lies in the use of proprietary virtual currencies, which conceal the real-world cost of digital items. Consumers are often unable to clearly see the true price tag, making it difficult to make informed decisions. This practice, the BEUC argues, undermines consumer rights and denies players the transparency they deserve.The BEUC's complaint emphasizes that in-game purchases should always be displayed in real-world currency, allowing consumers to understand the true value of their spending. This transparency is crucial, as the organization believes that companies' claims about gamers' preference for premium in-game currencies are often unfounded. Instead, the BEUC suggests that consumers are frequently denied their rights when using such currencies, leading to a concerning lack of control over their spending.

Exploiting the Vulnerability of Children

The BEUC's complaint also highlights the particular vulnerability of children to these "manipulative tactics" employed by game publishers. The organization argues that companies are well aware of children's susceptibility and deliberately use tactics to lure younger consumers into spending more. This predatory behavior, the BEUC contends, takes a significant toll on families and undermines the well-being of young gamers.Regulators, the BEUC asserts, must take decisive action to address this issue and ensure that the gaming industry provides safe and transparent environments for all consumers, regardless of age. The virtual world, the organization maintains, should not be exempt from the real-world rules and regulations that protect consumers from deceptive practices.

Industry Response and Ongoing Concerns

In response to the BEUC's complaint, the industry group Video Games Europe, which includes members such as Epic Games, Roblox, Activision Blizzard, Electronic Arts, Supercell, and Ubisoft, has stated that consumers are already well-informed about in-game currencies. The group claims that the PEGI (Pan-European Game Information) Code of Conduct requires developers to ensure that the real-world cost is clear and unambiguous at the point of purchase.However, the BEUC's complaint suggests that this industry self-regulation is insufficient, and that regulators must step in to provide stronger consumer protections. The organization's call for action is bolstered by recent high-profile cases, such as the record FTC fine imposed on Epic Games for allowing children to purchase Fortnite's V-Bucks in-game currency without parental consent until 2018.As the gaming industry continues to evolve and expand, the need for robust consumer safeguards becomes increasingly pressing. The BEUC's complaint serves as a wake-up call, urging regulators to prioritize the protection of gamers, particularly the most vulnerable among them, and to ensure that the virtual world adheres to the same standards of transparency and fairness as the physical one.