Consumer group sues to ban purchases inside games like Fortnite and Minecraft in Europe
Reading Time: 3 minutesVideo games are some of the most lucrative apps in the world, in part because of how they lure people into spending money on credits to buy digital goodies, to the tune of more than $50 billion annually worldwide. But a powerful consumer group in Europe believes game publishers are ‘purposefully tricking consumers,’ especially children, into making purchases, and it is leveling up to call for a ban on in-game purchases as they exist today.
The European Consumer Organisation (BEUC) filed a complaint on Thursday on behalf of consumer groups in 17 countries, citing ‘unfair practices’ and breach of consumer protection in games with in-app or in-game purchases. Popular video games played on mobile and other devices have been singled out in the complaint. They include Epic Games’ Fortnight, Supercell’s Clash of Clans, Microsoft’s Minecraft, and EA Sports FC 24.
Consumers, the BEUC 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 spend an average of €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, the biggest of which are:
- 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.
- 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 to clarify 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. ‘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.’
Microsoft, Supercell, and Epic Games did not immediately respond to requests for comment. Video Games Europe, a group representing major video games in the region, pushed back on the claims. In a statement, it said:
84% of 11- to 14-year-olds play video games in Europe
The BEUC’s complaint stems partly from the fact that in-app and in-game purchases are a hugely popular mechanic — they generate more revenues than in-app revenues from the cinema and music industries combined, it said.
In 2023, a report by the European Parliament found that more than half of all EU consumers regularly play video games, and children do so more than adults. In fact, 84% of consumers aged 11 to 14 play games on mobile or other devices. And since kids typically have lower financial literacy (and typically less money of their own), this poses a major issue.
This is not the first time BEUC has taken aim at in-app currencies, but this is its first focus on games. In 2021, it filed a complaint against TikTok over virtual currency. In turn, the ByteDance-owned app committed to making changes, like clearly marking what purchases worked out to in real money. The BEUC is still unhappy with the changes and appears to still be fighting against them.
This wider target of all video games could bring more attention to the issue, giving BEUC more ammunition in the TikTok case, too.
Ref: techcrunch
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