European Consumer Organization alleges game companies including Activision, Electronic Arts, Epic, and Ubisoft are 'tricking' consumers with premium in-game currencies
The org is calling on the European Commission to "stop the unfair practices" inherent in the sale and use of virtual currencies in videogames.
The European Consumer Organization, along with 22 member organizations from 17 countries, has filed a complaint with the authorities who enforce EU consumer protection laws accusing Activision Blizzard, Electronic Arts, Epic Games, Ubisoft, and other major game companies of "purposefully tricking consumers" with in-game currencies that are "used to confuse and disconnect consumers from the real value of their in-game spending."
"In the past years, videogame companies have adopted business models relying significantly on in-game purchases made through premium virtual currencies purchased with euros (or other local currencies)," BEUC director general Agustín Reyna said in a letter sent to the CPC-Network (via Reuters). "Based on our analysis and the accompanying evidence (in attachments), we have strong reasons to believe that consumers may fall prey to several deceptive practices when buying premium virtual currencies, and that the latter are essentially used to confuse and disconnect consumers from the real value of their in-game spending.
"We therefore take the view that the concerned traders fail to provide consumers—and especially children—with safe online environments fully complying with EU consumer 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 rising misuse of virtual currencies is "particularly worrying" because it's going beyond the boundaries of videogames and into social media platforms like TikTok and Twitch, and online marketplaces like Amazon.
The complaint turns on four major points:
- That consumers cannot see the real cost of in-game items, and are thus more prone to overspending
- That game companies' claims that consumers prefer virtual in-game currencies rather than real money are wrong
- That the use of premium currencies are sometimes tied to "unfair terms favoring game developers," which denies them their legal rights
- And that children are particularly vulnerable to "manipulative tactics" because they "have limited financial literacy and are easily swayed by virtual currencies."
"Gamers shouldn’t need to rely on a calculator anytime they want to make an informed decision on how much they want to spend," Reyna said in a separate statement. "The money they spend should be displayed in real money and deceptive practices must be stopped.
"Today, premium in-game currencies are purposefully tricking consumers and take a big toll on children. Companies are well aware of children’s vulnerability and use tricks to lure younger consumers into spending more."
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BEUC & 22 members have filed a complaint with the @EU_Commission & the European Network of Consumer Protection Authorities calling for a full investigation into unfair practices by major video game companies. https://t.co/5rq4JiNCXKHear from our Senior Legal Officer @ReginBXL 👇 pic.twitter.com/PBW9cFGPj7September 12, 2024
Virtual currencies can obscure the real cost of in-game items in a number of ways, adding layers of "abstraction" to bundling bonus currency into higher-priced packages and actively encouraging overspending. A separate report filed today by the Norwegian Consumer Council, cited by BEUC, said a Fortnite battle pass costs 950 V-bucks, but the smallest bundle of V-bucks available for purchase is 1,000: "There are no in-game items that cost 50 V Bucks, so unless the player purchases additional bundles, they will not be able to spend the entirety of the purchased premium currency."
Aside from the general immorality of the whole thing, BEUC said in its letter that it suspects at least some of the virtual currency practices in videogames constitute "several widespread infringements" 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 alert and to ensure that the rights of consumers—especially those of young ones—are fully respected," it said.
BEUC, whose acronym comes from the French name Bureau Européen des Unions de Consommateurs, is an umbrella organization representing 44 consumer organizations from 31 European countries. Its work aims to ensure EU policies "improve the lives of consumers" in matters including "competition, consumer rights, digital rights, energy, redress and enforcement, financial services, food, health, safety, sustainability and trade policy."
Video Games Europe, a trade body representing the games industry in the EU, told PC Gamer that videogames with in-game purchases must display PEGI's [Pan-European Game Information] in-game purchases icon, ensure that the real-money cost of virtual currencies is clearly presented to consumers, and provide receipts or invoices when real-money purchases are made. It also said that a 2024 report on in-game spending by children found that most parents say their children don't spend any money at all on in-game items, and that among those who do, the vast majority have either agreements with their parents, or explicit limits, on how much they spend.
"The purchase of in-game currencies is a well-established practice, and well understood by players," Video Games Europe said. "Our members always respect European consumer laws in how they offer these purchases.
"Our industry offers a wide range of games that enable 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 without any upfront cost or commitment.
"Video Games Europe and its members support and promote fair and transparent principles for purchases of in-game content, including for in-game currency. The PEGI Code of Conduct requires developers to ensure that the real-world cost is clear and unambiguous at the point of purchase of the in-game currency."
Epic Games declined to comment on the complaint. I've reached out to the other game companies named in the complaint and will update if I receive a reply.
Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.
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