Video games are some of most lucrative apps in the world, thanks in part because of how they lure people into spending money on credits to play games and buy digital goods, to the tune of more than $50 billion annually worldwide. But a powerful consumer group in Europe believes games publishers are “purposefully tricking consumers,” especially children, into making purchases, and it is levelling up to fight against that and calling for a ban on in-game purchases as they exist today.
The BEUC filed a complaint today in Europe on behalf of consumer groups in 17 countries, citing “unfair practices” and a breach of consumer protection in games with in-app or in-game payments. Popular video games played on mobile and other screens are singled out in the complaint. They include Epic Games’ Fortnight, Supercells Clash of Clans, Microsoft’s Minecraft, and EA Sports FC 24 among those that it’s targeting.
Consumers, is said, are “overspending” in games because they can’t see the real costs clearly enough, and it says the situation is worse with under-18 gamers, who are spending an average €39 per month on in-game purchases. You can read BEUC’s full complaint here.
The BEUC is making a string of recommendations to the European regulators in relation to this. The biggest of them:
— It’s asking for the European Commission to consider an outright ban on the use of in-game and in-app paid currencies, based on the conclusions of the Digital Fairness Fitness Check last updated in August.
— Other suggestions include factoring in-app purchases into game age ratings, restricting access for under-18s, more transparency in how games charge for different services, and better guardrails in games to make clear when players are paying for something extra.
“The online world brings new challenges for consumer protection, and it shouldn’t be a place where companies bend the rules to increase profits,” said Agustín Reyna, Director General of BEUC, in a statement. F”BEUC’s members have identified numerous cases where gamers are misled into spending money. Regulators must act, making it clear that even though the gaming world is virtual, it still needs to abide by real-world rules.
“Gamers shouldn’t need to rely on a calculator anytime they want to make an informed decision on how much they want to spend. The money they spend should be displayed in real money and deceptive practices must be stopped. Today, premium in-game currencies are purposefully tricking consumers and take a big toll on children. Companies are well aware of children’s vulnerability and use tricks to lure younger consumers into spending more.”
We have reached out to Microsoft, Supercell and Epic Games for comment. In the meantime, a spokesperson for Video Games Europe, a group representing major video games in the region, provided a response to TechCrunch pushing back on the claims.
“The purchase of in-game currencies is a well-established practice, and well understood by players. Our members always respect European consumer laws in how they offer these purchases. Our industry offers a wide range of games that enable players to access a huge variety of genres and innovative new experiences across different services. Players can experience entire games without spending any money, giving them the opportunity to try games without any upfront cost or commitment,” said an VGE spokesperson. “Video Games Europe and its members support and promote fair and transparent principles for purchases of in-game content, including for in-game currency. The PEGI Code of Conduct requires developers to ensure that the real-world cost is clear and unambiguous at the point of purchase of the in-game currency.
84% of 11-14 year olds play video games in Europe
The BEUC’s complaint stems in part from the fact the in-app and in-game purchases are a hugely popular mechanic in what is a hugely popular form of entertainment — bigger than in-app revenues from cinema and music industries combined, it said.
In 2023, a research report from the European Parliament found that more than half of all EU consumers are regularly playing video games; and children are playing more than adults: among consumers aged 11-14, the proportion of those playing video games on mobile or other screens is a whopping 84%. Given kids typically have less financial literacy (and typically less money of their own), this poses a major issue.
This is not the first time that BEUC has taken aim at in-app currencies, although this is its first focus on games. In 2021 it filed a complaint against TikTok over virtual currency. In turn, the Bytedance-owned video app committed to changes, including a clearer markers of what purchases worked out to in actual real money. The BEUC is still unhappy with the changes and appears still to be fighting against that.
The wider target of all video games could bring more attention to the issue, giving BEUC more ammunition in that case, too.