The European Consumer Organisation Calls for a Ban on In-Game Purchases to Protect Children

The European Consumer Organisation (BEUC) has filed a complaint against video game publishers, alleging that they are using "unfair practices" to trick consumers, particularly children, into spending money on in-game purchases. BEUC wants to see a ban on in-game purchases as they currently exist. The organization claims that children are especially vulnerable to these practices, as they often have lower financial literacy and less money at their disposal.

• The complaint was filed on behalf of consumer groups in 17 European countries.
• The BEUC cites "unfair practices" and breach of consumer protection in games with in-app or in-game purchases.
• The complaint singles out popular video games such as Fortnite, Clash of Clans, Minecraft, and EA Sports FC 24.

Children Spending Millions on In-Game Purchases

The BEUC claims that consumers are "overspending" on mobile games due to unclear pricing and the use of virtual currency. The report says that children are especially vulnerable to these spending practices, with an average of €39 spent on in-game purchases each month. These practices are seen as particularly problematic given the growing popularity of video games among children.

• The BEUC argues that companies deliberately make it difficult for consumers to understand the real cost of in-game purchases.
• The use of virtual currency is seen as a way to obscure the real cost of in-game purchases.
• The BEUC is calling for greater transparency around in-game pricing and for better protections for children.

The Gaming Industry’s Response

The gaming industry, through the group Video Games Europe, has defended the use of in-game purchases. The group claims that these purchases are a well-established practice that is well understood by players. They also point out that players can experience many games without spending any money.

• Video Games Europe emphasizes that its members are committed to following European consumer laws in the way that they offer in-game purchases.
• They insist that they promote fair and transparent principles for the purchase of in-game content.
• Video Games Europe claims that the PEGI Code of Conduct requires developers to ensure that the real-world cost of in-game currency is clearly displayed at the point of purchase.

The Impact of In-App Purchases on Children

The BEUC’s complaint is based on the fact that in-app and in-game purchases generate more revenue than in-app revenues from the cinema and music industries combined. This, combined with the widespread popularity of video games among children, has led to concerns about the potential for harm to children.

• The European Parliament found that more than half of all EU consumers regularly play video games.
• The report also found that children are more likely to play video games than adults, with 84% of 11 to 14-year-olds playing games on mobile or other devices.
• The BEUC argues that the combination of children’s vulnerability to these practices, combined with the widespread popularity of mobile games, creates a significant risk of harm.

BEUC's Recommendations

The BEUC has made a number of recommendations to the European regulators, including:

• An outright ban on the use of in-game and in-app paid currencies.
• Factoring in-app purchases into game age ratings, restricting access for under-18s.
• Increased transparency in how games charge for different services.
• Better guardrails to clarify when players are paying for something extra.

The Future of Microtransactions and In-Game Purchases

The BEUC's complaint is part of a growing movement to address the issue of in-game purchases and the potential impact they have on children. It remains to be seen whether the European regulators will take action on BEUC's complaint, but it is clear that this is an issue that is unlikely to go away anytime soon.

• The BEUC’s complaint is likely to bring renewed attention to the issue of microtransactions and in-game purchases.
• The complaint could lead to increased scrutiny of the gaming industry by regulators.
• The debate over in-game purchases is likely to continue, as the gaming industry evolves and new technologies emerge.