The European Commission has received a complaint from European consumer protection organizations regarding the video game industry’s marketing and use of in-game digital currencies.
On September 12, the European Consumer Organisation (BEUC) and 22 member organizations from 17 countries urged the European Commission and the European Network of Consumer Authorities (CPC-Network) to implement more stringent enforcement measures against video game companies that optimize consumer spending through the use of in-game currencies.
The watchdogs’ report observed the expansion of in-game purchases utilizing in-game digital currencies, particularly in free-to-play games and those played by children. They asserted that this practice now generates substantial revenues for game companies.
In the European Union, the consumer protection group is apprehensive about the legal uncertainty that these currencies generate due to their dual status as digital content and payment methods.
“Following our analysis, we have reasons to believe that consumers fall prey to many deceptive practices when buying premium in-game currencies in video games.”
“We have reason to believe that consumers are susceptible to numerous deceptive practices when purchasing premium in-game currencies in video games in light of our analysis.”
In contrast to certain industry assertions, the organizations contended that consumer rights should apply to purchases made with in-game currencies. It cited research indicating that certain consumers find these currencies perplexing and potentially misleading.
It was observed that games frequently display prices exclusively in their in-game digital currency without explicit conversion to real money, which could potentially violate EU consumer protection laws.
The report did not explicitly address cryptocurrencies; however, numerous Web3 games operate similarly, utilizing tokens for in-game purchases.
BEUC also asserted that in-game currencies have the potential to distort consumers’ economic behavior by reducing the tangible nature of actual prices and reducing the “pain-of-paying” effect.
The game companies noted include Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft.
The report asserted that Fortnite, the flagship game of Epic Games, has the potential to generate up to $2 million per day in in-game purchases.
Additionally, the average monthly expenditure of children on in-game purchases increased by approximately 18%, from nearly $36 in 2020 to $43 in 2023.
To resolve these challenges within the gambling industry, the organizations advocated for enhanced enforcement and more explicit regulatory guidelines.
CCP Games, the developer of Eve Online, disclosed its forthcoming massively multiplayer online survival game, Eve Frontier, on September 12. The game will enable participants to establish their self-contained economies by utilizing cryptocurrencies.
