The European Consumer Organisation, together with 22 member organisations from 17 countries, has filed a complaint with the authorities responsible for enforcing EU consumer protection laws, accusing Activision Blizzard, Electronic Arts, Epic Games, Ubisoft and other major gaming companies of “deliberately deceiving” consumers with in-game currencies in order to “confuse them and make them see the true value of their in-game spending”.
“Over the past few years, video game companies have adopted business models that rely heavily on in-game purchases made with premium virtual currencies purchased with euros (or other local currencies),” BEUC Director General Agustín Reyna said in a letter to the CPC network (via Reuters). “Based on our analysis and the evidence attached (in the appendix), we have good reasons to believe that consumers can fall victim to several fraudulent practices when purchasing premium virtual currencies and that these essentially serve to confuse consumers and conceal from them the true value of their in-game spending.
“We therefore consider that the traders concerned are failing to provide consumers – and children in particular – with a safe online environment that fully complies with EU consumer protection rules.”
The complaint targets Microsoft-owned Activision Blizzard and Mojang Studios, Electronic Arts, Epic Games, Roblox Corporation, Tencent-owned Supercell, and Ubisoft. It also claims that the increasing abuse of virtual currencies is “particularly concerning” because it goes beyond the boundaries of video games and also encompasses social media platforms like TikTok and Twitch, as well as online marketplaces like Amazon.
The complaint revolves around four main points:
- That consumers cannot see the actual cost of in-game items and are therefore more likely to overspend
- That game developers’ claims that consumers prefer virtual in-game currencies to real money are false
- That the use of premium currencies is sometimes tied to “unfair conditions in favor of game developers,” which deprives them of their legal rights.
- And that children are particularly vulnerable to “manipulative tactics” because they “have limited financial knowledge and are easily influenced by virtual currencies.”
“Players should not have to rely on a calculator every time they want to make an informed decision about how much to spend,” Reyna said in a separate statement. “The amount they spend should be shown in real money and fraudulent practices must be stopped.”
“Today, consumers are deliberately deceived with premium in-game currencies, which is very harmful to children. Companies are well aware of the vulnerability of children and resort to tricks to entice younger consumers to spend more money.”
BEUC and 22 members have filed a complaint with the @EU_Commission and the European Network of Consumer Authorities, calling for a full investigation into the unfair practices of major video game companies. https://t.co/5rq4JiNCXKHear from our Senior Legal Officer @ReginBXL 👇 pic.twitter.com/PBW9cFGPj712 September 2024
Virtual currencies can obscure the true cost of in-game items in a number of ways, adding additional “layers of abstraction” to the bundling of bonus currencies in higher-priced packages, thereby encouraging excessive spending. A separate report filed today by the Norwegian Consumer Council and cited by BEUC says a Fortnite Battle Pass costs 950 V-Bucks, but the smallest V-Bucks package you can buy costs 1,000: “There are no in-game items that cost 50 V-Bucks, so unless the player buys additional packages, they cannot spend all of the premium currency purchased.”
Aside from the general immorality of the whole thing, BEUC stated in its letter that it suspected that at least some of the practices related to virtual currencies in video games constituted “several widespread violations” of EU directives, including the Unfair Commercial Practices Directive, the Consumer Rights Directive and the Unfair Contract Terms Directive, as well as various individual national regulations.
“We call on the CPC network to stop the unfair practices highlighted in this warning and to ensure that the rights of consumers – especially those of young people – are fully respected,” it said.
BEUC, whose acronym derives from the French Bureau Européen des Unions de Consommateurs, is an umbrella organisation representing 44 consumer organisations from 31 European countries. Its work aims to ensure that EU policies “improve the lives of consumers” in areas such as “competition, consumer rights, digital rights, energy, redress and enforcement, financial services, food, health, safety, sustainability and trade policy.”
Video Games Europe, a trade association representing the games industry in the EU, told PC Gamer that video games with in-game purchases must display the PEGI (Pan-European Game Information) in-game purchases icon, that the price of virtual currencies in real money must be clearly displayed to consumers, and that receipts or invoices must be provided when making purchases in real money. It also said that a 2024 report on children’s in-game spending found that most parents say their children do not spend any money at all on in-game items, and that the vast majority of those who do have either agreements with their parents or explicit limits on how much they can spend.
“Purchasing in-game currencies is a common practice and well understood by players,” said Video Games Europe. “Our members always respect European consumer laws in the way they offer these purchases.”
“Our industry offers a wide variety 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 policies for purchasing in-game content, including in-game currency. The PEGI Code of Conduct requires developers to ensure that the true cost of purchasing in-game currency is clear and unambiguous.”
Epic Games has declined to comment on the complaint. I have contacted the other gaming companies named in the complaint and will let you know if I receive a response.
