Video games are some of the most lucrative apps in the world, in part because they entice people to spend money on credits to buy digital goodies – more than $50 billion a year worldwide. However, an influential consumer organization in Europe believes that game makers are “deliberately tricking consumers – especially children – into making purchases” and is calling for a ban on in-game purchases in their current form.

The European Consumer Organisation (BEUC) filed a complaint on Thursday on behalf of consumer groups from 17 countries, denouncing “unfair practices” and breaches of consumer protection in games with in-app or in-game purchases. The complaint specifically names popular video games played on mobile phones and other devices, including Epic Games’ Fortnight, Supercell’s Clash of Clans, Microsoft’s Minecraft and EA Sports FC 24.

According to BEUC, consumers spend “too much money” on games because they cannot see the true costs clearly enough. The situation is even worse for players under 18, who spend an average of 39 euros per month on in-game purchases. You can read BEUC’s full complaint here.

BEUC makes a number of recommendations to European regulators. The most important of these are:

• A complete ban on the use of paid currencies in games and apps, based on the conclusions of the Digital Fairness Fitness Check, last updated in August.
• Considering in-app purchases when rating games, restricting access to those under 18, increasing transparency in billing for different services in games, and improving controls to clarify when players are paying extra for something.

“The online world brings new challenges for consumer protection and should not be a place where companies bend the rules to increase their profits,” said Agustín Reyna, BEUC’s director general, in a statement. “BEUC members have identified numerous cases where players are tricked into spending money. Regulators must act and make it clear that the gaming world, even if it is virtual, must still comply with real-world rules.”

“Players should not have to rely on a calculator every time they want to make an informed decision about how much to spend. The amount they spend should be displayed in real money and fraudulent practices must be stopped. Today, consumers are deliberately deceived with premium currencies in games and children suffer greatly as a result. Companies are well aware of the vulnerability of children and use tricks to entice younger consumers to spend more.”

Microsoft, Supercell and Epic Games did not immediately respond to requests for comment. Video Games Europe, a group representing the region’s major video game companies, denied the claims. In a statement, it said:

Purchasing in-game currencies is a common practice and well understood by players. Our members always respect European consumer laws in the way they offer these purchases. Our industry offers a wide range of games, allowing players to access a huge variety of genres and innovative new experiences across different services. Players can experience entire games without spending any money, giving them the opportunity to try games with no upfront costs or commitments. Video Games Europe and its members support and promote fair and transparent principles for purchasing game content, including in-game currencies. The PEGI Code of Conduct requires developers to ensure that the true cost is clear and unambiguous at the time of purchase of in-game currency.

84% of 11- to 14-year-olds in Europe play video games

BEUC’s complaint is based in part on the fact that in-app and in-game purchases are an extremely popular mechanic – they generate more revenue than the in-app revenue of the cinema and music industries combined, it says.

In 2023, a European Parliament report found that more than half of all EU consumers play video games regularly, with children playing more than adults. In fact, 84% of consumers aged 11 to 14 play games on mobile phones or other devices. And since children tend to be less financially literate (and tend to have less money of their own), this is a big problem.

This isn’t the first time BEUC has targeted in-app currencies, but this is its first focus on games. In 2021, it filed a complaint against TikTok over virtual currency. In return, the ByteDance-owned app committed to making changes, such as clearly labeling which purchases were made with real money. BEUC is still unhappy with the changes and still seems to be fighting them.

This broader focus on all video games could bring more attention to the issue and also give BEUC more ammunition in the TikTok case.