A European consumer advocacy group has alerted the European Commission and the European Network of Consumer Authorities about their concerns regarding the purchases of in-game currencies, like Fortnite’s V-Buck or PUBG’s UC.
Bureau Européen des Unions de Consommateurs or BEUC is the umbrella group for 44 independent consumer organisations from 31 countries, with the main agenda of defending the interests of European consumers. The open letter describes, “BEUC and member organizations from 17 countries denounced to EU authorities the unfair practices of leading video game companies, behind games such as Fortnite, EA Sports FC 24, Minecraft and Clash of Clans. Our analysis concludes that traders breach EU consumer protection laws.”
BEUC and its members found 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.
- Companies’ claims that gamers prefer in-game premium currencies are wrong.
- Consumers are often denied their rights when using premium in-game currencies, tied to unfair terms favoring 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.
In their survey via Statistia, BEUC found that over half of EU consumers play Video Games regularly, among which 84% are aged 11-14. The revenue generated by EU consumers exceeds $50 billion, counting about one-quarter of revenues in the video game market.
In a 35-page-long publication, BEUC advocated the European Commission:
– To consider banning the use of premium currencies in-game
– If not banned, strict regulation of purchases for users below 18 years
– Amend EU Consumer Law for strict transparencies
– Consumers should be allowed to choose the amount of currency they need, rather than purchasing the pre-set bundle
– Clear separation between types of virtual currencies (premium in-game currencies and earned currencies)
– Games should have their strictest privacy settings active “by default”
BEUC argues that while European consumer law remains fully applicable to the gaming sector and to in-game currencies, laws are insufficiently enforced.
Source: BEUC via Rock Paper Shotgun
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