Regulating In-Game Currencies: Protecting Consumers and Empowering Gamers

A European consumer advocacy group, the Bureau Européen des Unions de Consommateurs (BEUC), has raised concerns about the use of premium in-game currencies in popular video games. The group's open letter to the European Union Commission highlights the potential for consumer exploitation, particularly among children, and calls for stricter regulations to address the issue.

Empowering Consumers and Safeguarding Vulnerable Gamers

Transparency and Informed Choices

The BEUC argues that the lack of price transparency surrounding premium in-game currencies leads to consumer overspending. The practice of bundling currency in fixed amounts, rather than allowing users to purchase the exact amount they need, further exacerbates this issue. The group contends that game developers' claims about consumer preferences for in-game currencies are misleading, and that consumers are often denied their rights when using these virtual currencies.

The BEUC's recommendations call for the European Union to consider banning the use of premium currencies in games and apps, or at the very least, prohibiting their sale to individuals under the age of 18. They also propose amending consumer laws to introduce stricter transparency requirements, ensuring that the real-world value of in-game currencies is clearly displayed before each transaction.

Protecting Children and Adolescents

The BEUC's report highlights the particular vulnerability of children and adolescents to the manipulative tactics employed by game developers. Data shows that children in Europe are spending an average of €39 per month on in-game purchases, despite their limited financial literacy and susceptibility to the allure of virtual currencies.

To address this concern, the BEUC recommends that the European Commission conduct a study to determine the most effective means of displaying in-game currencies to protect consumers, especially young gamers. They also suggest that consumer law should be amended to require game developers to deactivate in-game payment mechanisms by default, making them "opt-in" rather than the default option.

Strengthening Consumer Rights

The BEUC's investigation also reveals that consumers are often denied their rights when using premium in-game currencies, with unfair terms and conditions favoring game developers. To address this, the group proposes that the European Commission clarify by law that consumers have the same rights with regard to in-game transactions using in-game premium currencies as they do for purchases made with real money.

Additionally, the BEUC recommends amending the Annex of the Unfair Contract Terms (UCTD) Directive to state that discarding refund claims for in-game and in-app premium currencies is "presumably unfair." This would provide consumers with greater protections and recourse when dealing with issues related to in-game purchases.

Separating In-Game Currencies and Promoting Transparency

The BEUC's recommendations also call for the European Union to mandate the separation of premium in-game currencies and currencies earned in-game. This would ensure that consumers fully understand how much they are spending within the game, rather than being misled by the blurring of virtual and real-world currencies.

Furthermore, the group suggests that existing consumer laws should be more consistently enforced with regard to in-game purchases, and that enforcement groups from different sectors, such as data protection or financial services, should collaborate more closely to address these issues effectively.

Addressing Algorithmic Influence and Privacy Concerns

The BEUC's report also raises concerns about the potential for games to influence consumer behavior through algorithmic means. They recommend that games should have their strictest privacy settings active "by default" so that people can play games "without having their economic behavior be influenced algorithmically."

This recommendation aims to empower consumers and protect their privacy, ensuring that their in-game actions and purchases are not being exploited for commercial gain without their full understanding and consent.

Towards a Fairer and More Transparent Gaming Ecosystem

The BEUC's open letter to the European Union Commission represents a significant step in the ongoing effort to address the challenges posed by the widespread use of premium in-game currencies. By advocating for stricter regulations, greater transparency, and enhanced consumer protections, the group aims to create a more equitable and transparent gaming ecosystem that prioritizes the well-being of all players, particularly the most vulnerable.

As the digital landscape continues to evolve, it is crucial that policymakers, industry stakeholders, and consumer advocates work together to ensure that the gaming industry upholds the highest standards of fairness, transparency, and consumer protection. Only then can we truly empower gamers and safeguard their rights in the ever-changing world of digital entertainment.