Gaming giants face EU complaint over “tricking” children
BEUC (The European Consumer Organisation) and 22 of its member organisations from 17 countries have lodged a formal complaint against some of the world’s leading video game companies regarding in-game purchases. The complaint, filed with the European Commission and the network of Consumer Protection Authorities (CPC-Network), accuses companies like Activision Blizzard, Electronic Arts, Roblox Corporation, Supercell, and Ubisoft of employing deceptive practices in their popular games, including Fortnite, EA Sports FC 24, Minecraft, and more. In 2020 alone, in-game purchases generated over $50 billion globally.
Allegations of misleading tactics
According to BEUC’s analysis, the core issue revolves around the way companies market and sell “premium currencies”—virtual money that gamers purchase with real money to buy in-game items. The complaint alleges that video game companies lack transparency regarding the real-world cost of digital items, causing consumers—particularly children—to overspend without fully understanding their expenses. Moreover, the BEUC argues, gamers often face challenges in reclaiming their rights once they’ve made these purchases, such as difficulties obtaining refunds or experiencing sudden changes in the value of in-game items.
According to BEUC’s research, many players would rather see the true cost in actual currency, allowing them to make informed decisions.
Protecting children
A major focus of the complaint is the vulnerability of children: in Europe, 84 percent of children aged 11-14 play video games regularly. BEUC argues that gaming companies have not done enough to protect these young consumers, who often struggle to understand the true cost and implications of in-game purchases.
The complaint urges the European Commission and CPC-Network to take immediate action to protect young gamers. One proposed solution is to deactivate in-game purchases by default for all users, particularly children, ensuring that any purchases are a deliberate and informed choice.
Video Games Europe, representing companies such as Epic Games, Roblox, Activision Blizzard, Electronic Arts, Supercell, and Ubisoft, cites Ipsos surveys on how parents oversee their children’s spending. According to Video Games Europe, the results from the past five years prove that 90 percent of parents remain actively involved in supervising their children’s spending and that there has been a slight decline in the percentage of children spending on in-game content, now below 25 percent.
The cover of BEUC’s publication.
Violations of EU consumer law
BEUC contends that the practices of these gaming companies violate several EU consumer protection laws, including the Consumer Rights Directive (2011/83/EU) and the Unfair Commercial Practices Directive (2005/29/EC). These laws are designed to ensure that consumers have access to clear and accurate information and are not subjected to unfair or misleading marketing practices.
BEUC wants to see full price transparency for in-game currencies, the cessation of “unfair terms” that allow companies to modify game features or withdraw content without notice, and the recognition of consumer rights, such as the ability to receive refunds or exercise legal guarantees.
As the European Commission and the CPC Network begin their investigations, the outcome could have major implications for the future of the gaming industry, extending beyond the companies mentioned in the report.
Industry’s reaction
Video Games Europe, stated that the use of in-game currencies is a long-established and well-understood practice among players. “Our members consistently adhere to European consumer laws when offering these purchases. The PEGI Code of Conduct mandates that developers clearly and unambiguously display the real-world cost at the point of purchase for in-game currencies,” declared Video Games Europe.
The company also defended the practice, as a way to finance quality entertainment. “The ability to purchase in-game content has been important to support greater consumer choice and to finance the European video games industry. In-game purchases have allowed new developments of games, including the availability of free to play games and the live operations of games for many years after release, in many cases by small and independent studios.”
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