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Consumer groups denounce video games’ manipulative spending tactics

No.1341393 View ViewReplyOriginalReport
https://www.beuc.eu/press-releases/consumer-groups-denounce-video-games-manipulative-spending-tactics

Today, BEUC and 22 member organisations* from 17 countries submitted a complaint to EU authorities on the unfair practices of leading video game companies1 , behind games such as Fortnite, EA Sports FC 24, Minecraft and Clash of Clans. Our analysis concludes that traders breach EU consumer protection laws. We call on authorities to ensure that traders play by the rules and provide consumers with safe gaming environments.

BEUC’s alert to the European Commission and the European Network of Consumer Authorities (CPC-Network) exposes how the video game industry maximises consumers’ spending by using premium in-game currencies2 . Specifically, BEUC and its members3 have identified that:

Consumers cannot see the real cost of digital items, leading to overspending: the lack of price transparency of premium in-game currencies and the need to buy extra currency in bundles pushes consumers to spend more. In-game purchases should always be displayed in real money (e.g.: Euro), or at least they should display the equivalence in real-world currency.
Companies’ claims that gamers prefer in-game premium currencies are wrong: Many consumers find this unnecessary step misleading and prefer buying items directly with real money.4
Consumers are often denied their rights when using premium in-game currencies, tied to unfair terms favouring game developers.
Children are even more vulnerable to these manipulative tactics. Data shows that children in Europe are spending on average €39 per month on in-game purchases. While they are among the ones playing the most, they have limited financial literacy and are easily swayed by virtual currencies.
Agustín Reyna, Director General of BEUC, commented:
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