Consumer watchdogs call for EU action on in-game digital money

A group representing European consumer protection organizations has filed a complaint with the European Commission about the video game industry’s use and marketing of in-game digital currencies.

The European Consumer Organisation (BEUC) and 22 member organizations from 17 countries on Sept. 12 called for the European Commission and the European Network of Consumer Authorities (CPC-Network) to take stronger enforcement against video game companies that maximize consumer spending by using in-game currencies. 

A report from the watchdogs noted the growth of in-game purchases using in-game digital currencies, especially in free-to-play games and those played by children, a practice they claimed now generates significant revenues for game companies.

The consumer protection group is concerned about the dual nature of these currencies as both digital content and means of payment, creating legal uncertainty in the European Union.

“Following our analysis, we have reasons to believe that consumers fall prey to many deceptive practices when buying premium in-game currencies in video games.”

The groups argued that consumer rights should apply to purchases made with in-game currencies, contrary to some industry claims. It cited research showing that some consumers find these currencies confusing and potentially misleading.

It noted that games often display prices only in their in-game virtual currency, without clear conversion to real money, potentially violating EU consumer protection laws.

The report did not specifically mention cryptocurrencies, but many Web3 games operate similarly, with tokens used for in-game purchases.

BEUC also stated that in-game currencies can distort consumers’ economic behavior by making real prices less tangible and lowering the “pain-of-paying” effect.

Some of the game companies mentioned included Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell and Ubisoft. 

The report claimed Epic Games’ flagship game Fortnite can make up to $2 million per day from in-game purchases and the average total spending by children on in-game purchases per month increased around 18% from almost $36 in 2020 to $43 in 2023. 

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The organizations called for stronger enforcement and clearer guidelines from regulatory bodies to address these issues in the gaming industry.

On Sept. 12, Eve Online developer CCP Games announced its upcoming massively multiplayer online survival game, Eve Frontier. The game will allow players to create their own self-contained economies using cryptocurrencies. 

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