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On September 12, the European Consumer Organisation (BEUC) and 22 member organizations from 17 countries filed a formal complaint with the European Commission regarding the use and marketing of in-game digital currencies by video game companies. The consumer protection groups are calling for stronger enforcement measures to tackle deceptive practices associated with in-game currencies, particularly in free-to-play games and those popular among children.
The watchdogs' report highlights a significant rise in revenue generated from in-game purchases, fueled by these digital currencies. It points out that the dual nature of these currencies—acting as both digital content and payment methods—creates legal ambiguities within the European Union. This duality can lead to confusion and misleading practices, as many consumers struggle to understand the real value of these currencies.
The BEUC's analysis suggests that consumers often fall victim to deceptive practices when purchasing premium in-game currencies. The report argues that consumer rights should extend to transactions made with these virtual currencies, challenging industry claims that such purchases are exempt from traditional consumer protections. The report also notes that games frequently display prices exclusively in their virtual currencies without providing clear conversions to real-world money, potentially violating EU consumer protection laws.
Although the report does not specifically address {crypto} currencies, it draws parallels with Web3 games, where tokens are used for in-game transactions. The BEUC also warns that in-game currencies can obscure real prices, diminishing the "pain-of-paying" effect and distorting consumers' economic behavior.
Among the companies scrutinized are industry giants such as Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft. The report cites that Epic Games' popular title, Fortnite, can generate up to $2 million daily from in-game purchases. It also notes a significant increase in monthly spending by children on in-game purchases, rising from nearly $36 in 2020 to $43 in 2023.
The consumer organizations are advocating for clearer regulatory guidelines and stronger enforcement to address these issues in the gaming sector. This call to action aligns with broader efforts to ensure that digital transactions, including those involving in-game currencies, are conducted transparently and fairly.
