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

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

The European Consumer Organisation (BEUC) has formally accused video game publishers of deceptive practices related to in-game purchases. This complaint, representing consumer groups from 17 countries, claims that publishers mislead consumers, especially children, into spending excessive amounts on digital items.

Concerns Over Consumer Protection

In-game purchases, which generate over $50 billion in global revenue annually, often hide the true costs of digital goods. This lack of transparency makes it difficult for consumers to understand their actual spending. BEUC highlights that children, in particular, are targeted by these practices. Young gamers spend an average of €39 per month on in-game purchases. Popular games like Fortnite, Clash of Clans, Minecraft, and EA Sports FC 24 are specifically mentioned in the complaint.

BEUC’s Recommendations

BEUC is calling for European regulators to implement stricter measures. The organization demands a ban on paid in-game currencies, which often obscure the real cost of items and services. This recommendation follows the recent update to the Digital Fairness Fitness Check.

Additionally, BEUC advocates for stricter age ratings for games with in-game purchases. The group also seeks improved transparency regarding costs and clearer warnings before players spend money. Agustín Reyna, BEUC’s director general, stated that companies should not exploit consumers to maximize profits. He stressed that children need protection from these exploitative practices. According to Reyna, the virtual gaming world must adhere to the same consumer protection rules as the real world.

Industry’s Defense

The gaming industry has pushed back against these claims. Video Games Europe, representing major video game companies, defends the use of in-game currencies. The trade group argues that these purchases are a standard practice and that developers comply with European consumer laws. The group points out that many games offer free access, allowing players to try them without upfront costs. Furthermore, it claims that the PEGI Code of Conduct ensures that in-game currency costs are clear at the point of purchase.

Despite this defense, BEUC’s complaint underscores ongoing concerns about in-game purchases, particularly concerning younger consumers. A 2023 European Parliament report reveals that over half of 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 limited financial literacy and funds, the use of in-game currencies poses significant issues for regulators and consumer advocates.

This isn’t BEUC’s first action against digital currencies in apps. In 2021, the organization filed a complaint against TikTok for its use of virtual currency, which led to changes in how purchases were displayed.

The post European Consumer Protection Group Files Complaint Over Use of In-Game Digital Currencies appeared first on Cryptonews.

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