Is an EU reform relating to in-game currencies on the horizon?

The European Consumer Organisation (BEUC) have issued a report assessing premium in-game currencies where they highlight their request for EU-wide reform in relation to its regulation.

BEUC's report

The report details how BEUC and 22 of its member organisations spanning 17 European countries filed a complaint on 12 September 2024 to the European Commission and the network of consumer protection authorities (CPC-Network). The complaint is premised on the purportedly deceptive practices by various leading video game companies.

Whilst the report directly addresses some of the world's biggest games companies and their games, the BEUC state that the list of traders is not exhaustive.

The key complaints

BEUC's key complaints are that video game companies are preying on their consumers via their premium in-game currencies (often leading to consumers being unaware of their actual spending) and that they are failing to provide consumers (particularly children) with safe online environments that fully comply with EU consumer rules.

The report goes into further detail, but BEUC's complaints are based upon:

1. Premium in-game currencies confusing consumers because of the lack of clear pre-contractual information about prices and how the currencies materially distort the economic behaviour of consumers (especially vulnerable ones).
2. The lack of professional diligence by video game companies to better protect children and teenagers from unfair in-game purchases.
3. Unfair contract terms regulating premium in-game currencies, including unfair terms waiving consumer rights and those which "personalise consumers' gaming experience" and utilise personal data.

BEUC's requests

As a result, BEUC suspect that there are "several widespread infringements" of three EU directives (Directive 93/13/EEC on Unfair Terms in Consumer Contracts, Unfair Commercial Practices Directive 2005/29/EC and Consumer Rights Directive 2011/83/EU) and have requested the CPC-Network to:

1. Start a coordinated enforcement action to stop the unfair commercial practices highlighted and to ensure that the rights of consumers (especially young consumers) are fully respected.
2. Clarify that in-game purchases should be deactivated by default.
3. Publish a Common Position further explaining authorities’ assessment of the contentious practices.
4. Make more systemic use of the "vulnerable consumer" benchmark as laid down under EU Directive 2005/29/EC when enforcing EU consumer law in the gaming sector.

The use of AI

This report comes at a time when, just like in many other industries, the gaming sector is formulating its relationship with AI. 

As in other sectors, there are ethical issues to balance, not just legal ones. For example, should game companies be able to use AI to adapt the difficulty of a game if this increases a player's engagement?  Whilst this could see players spending more time in-game, it could also see them spending more on in-game currencies and purchases. We anticipate this being an area of focus in the future.

Takeaways

It is very much worth watching this space to see how the European Commission and CPC-Network respond to the complaint and if there is new EU regulation relating to premium in-game currencies on the horizon. Due to the aforementioned issues also spanning into the realm of premium virtual currencies used on social media platforms, it is hoped that any reform will be equally applicable to such platforms too.

To discuss the legal landscape in gaming, please contact Ben Travers or Bethany Wheeler-Fowler.