European Consumer Protection Group Files Complaint Over Use of In-Game Digital Currencies

The European Consumer Organisation (BEUC) has filed a complaint against video game publishers, accusing them of deceptive practices related to in-game purchases.

The complaint, submitted on behalf of consumer groups from 17 countries, alleges that game publishers are misleading consumers, particularly children, into spending excessive amounts on in-game purchases, TechCrunch reported.

According to the BEUC, in-game purchases, which generate more than $50 billion in revenue annually worldwide, often obscure the real costs of digital goods, making it difficult for consumers to understand how much they are actually spending.

Children Are More Vulnerable to In-Game Purchases

The organization claims that children, in particular, are vulnerable to these tactics, with young gamers spending an average of €39 per month on in-game purchases.

Popular titles such as Fortnite, Clash of Clans, Minecraft, and EA Sports FC 24 are among those mentioned in the complaint.

BEUC has called on European regulators to take stronger measures to protect consumers from these practices.

One of the group’s key demands is the banning of paid in-game currencies, which are often used to disguise the real cost of items and services within games.

This recommendation follows the conclusions of the Digital Fairness Fitness Check, which was updated in August.

Video game companies are breaching EU consumer protection laws by manipulating players' spending through premium in-game currencies, leaving consumers vulnerable to overspending and unfair terms. https://t.co/xJoCPGvIIe pic.twitter.com/uhXazb8nI4

— The Consumer Voice (@beuc) September 12, 2024

In addition, BEUC is advocating for stricter age ratings for games with in-game purchases, more transparency regarding costs, and clearer warnings when players are about to spend money.

“Companies should not be allowed to bend the rules to maximize profits. Consumers deserve transparency, and children, in particular, must be safeguarded against exploitative practices,” Agustín Reyna, BEUC’s director general, said.

“The virtual gaming world must adhere to the same real-world rules of consumer protection.”

Reyna further criticized the use of premium in-game currencies, arguing that they trick consumers into overspending, with children being the most affected.

Gaming Industry Pushes Back

The gaming industry, however, has pushed back against these claims.

Video Games Europe, a trade group representing major video game companies in the region, issued a statement defending the use of in-game currencies.

The group argued that in-game purchases are a well-established practice and that developers comply with European consumer laws.

It also emphasized that many games offer free access, allowing players to try them without upfront costs, and stated that the industry follows the PEGI Code of Conduct, ensuring that the real-world costs of in-game currencies are clear at the point of purchase.

Despite the industry’s defense, BEUC’s complaint underscores the growing controversy surrounding in-game purchases, particularly as they relate to younger consumers.

According to a 2023 report by the European Parliament, more than half of all EU consumers regularly play video games, with 84% of children aged 11 to 14 engaging with games on mobile or other devices.

Given children’s lower financial literacy and limited personal funds, the use of in-game currencies presents a significant issue for regulators and consumer advocates.

This is not the first time BEUC has targeted digital currencies in apps. In 2021, the organization filed a complaint against TikTok for its use of virtual currency, resulting in changes to how purchases were displayed.