Volkswacht Bodensee - EU consumer groups slam 'manipulative' video game spending tactics

Video games are wildly popular in Europe where more than half the population are players, according to industry figures published last month.

Europe's BEUC umbrella consumer rights group on Thursday filed a complaint with the European Commission, with support from member organisations in 17 European countries including France, Germany and Italy.

The groups said companies behind games such as Fortnite, EA Sports FC 24 and Minecraft are guilty of "manipulative spending tactics" involving in-game virtual currencies, which they said children "are even more vulnerable to".

The video game giants named were Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell and Ubisoft.

Virtual currencies are digital items -- such as gems, points or coins -- that can be bought with real money, often in the games themselves or in an app marketplace.

When the digital currency is then used to buy options or objects within a game, the consumer groups say players lose sight of the true sums involved, making them vulnerable to "overspending."

"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," said BEUC head Agustin Reyna.

The groups called for items to "always be displayed in real money (eg euro), or at least they should display the equivalence in real-world currency".

According to BEUC, 84 percent of those aged 11 to 14 play video games in Europe, while the in-game purchases market was worth around $50 billion worldwide in 2020.

Children in Europe spend on average 39 euros ($43) a month on in-game purchases, BEUC said. "While they are among the ones playing the most, they have limited financial literacy and are easily swayed by virtual currencies," it said in a statement.

The groups claim the companies are breaching European Union consumer protection laws.

"Regulators must act, making it clear that even though the gaming world is virtual, it still needs to abide by real-world rules," Reyna said.

S.Spengler--VB