Fortnite, EA Sports, and Minecraft microtransactions come under fire for 'manipulative tactics' as EU watchdog plans digital purchase reckoning
In a release comically titled Game OVER, the European Consumer Organisation has criticised the gaming industry for its microtransactions and what the organisation calls manipulation tactics. The BEUC specifically calls out Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft as well as Fortnite, EA Sports FC 24, Minecraft, and Clash of Clans as “leading video game companies” that it accuses of deceptive practices.
The BEUC is specifically targetting in-game transactions and premium in-game currencies, with the end-goal being to regulate or outright ban premium currencies. The organisation claims that in-game microtransactions and premium currencies actively breach European consumer protection laws, and it calls for authorities to force companies to follow the rules and create “safe gaming environments” for EU residents.
The organisation has highlighted a few issues, based on cited studies and market research, about consumer behaviour pertaining to in-game purchases and the marketing and in-game mechanics surrounding premium digital currencies. For starters, it blames a lack of transparency for overspending on in-game currency and says that children fall prey to manipulative tactics more easily. The organisation also pushes back against the recent claims that gamers prefer in-game currencies, calling the claim outright wrong — likely a sentiment most gamers will agree with.
As part of the call to action, the BEUC has made the following recommendations:
- The EU should consider banning premium in-game digital currencies, if not for everyone, at least for people under 18 years of age.
- Amend EU consumer law so that companies are forced to be more transparent about in-game purchases, specifically regarding local prices in real-world currency.
- EU consumer protection laws should be amended so that payment mechanisms are deactivated in-game by default, and that each purchase must be validated and confirmed via a notification, possibly even establishing a per-app password for in-game purchase authorisations.
- Change consumer law so that in-game privacy protections are enabled by default, make in-game purchases refundable, and allow consumers to choose exactly how much virtual currency they want to purchase, instead of forcing them to choose from a selection of pre-determined amounts or in-game bundles.
- Mandate the separation of premium and earned in-game currencies.
- EU consumer protection laws should be more strictly enforced so that developers cannot easily skirt responsibility for accidental purchases made by children and underage individuals.
The main goal of the BEUC's action seems to be to protect vulnerable consumers, like children, from potentially abusive and addictive in-game mechanics. According to the BEUC's research, 84% of EU children 11–14 years of age play video games, and the average monthly spend on in-game purchases is around €39 per month. Additionally, it wants to make gamers aware of what they're spending their money on, and make in-game purchases and microtransactions fairer.
It remains to be seen how EU lawmakers will react to the call for action, however, 22 members organisations from 17 countries have joined the BEUC in its complaint, suggesting there is significant support for the move towards a fairer gaming landscape. It's also unclear how games that rely almost entirely on microtransactions, like Fortnite and Warframe, will remain profitable in the EU if laws are amended to ban microtransactions and in-game currencies.
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Today, BEUC and 22 member organisations from 17 countries submitted a complaint to EU authorities on 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. We call on authorities to ensure that traders play by the rules and provide consumers with safe gaming environments.
BEUC’s alert to the European Commission and the European Network of Consumer Authorities (CPC-Network) exposes how the video game industry maximises consumers’ spending by using premium in-game currencies. Specifically, BEUC and its members have identified 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. In-game purchases should always be displayed in real money (e.g.: Euro), or at least they should display the equivalence in real-world currency.
- Companies’ claims that gamers prefer in-game premium currencies are wrong: Many consumers find this unnecessary step misleading and prefer buying items directly with real money.
- Consumers are often denied their rights when using premium in-game currencies, tied to unfair terms favouring 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.
Agustín Reyna, Director General of BEUC, commented:
“The online world brings new challenges for consumer protection, and it shouldn’t be a place where companies bend the rules to increase profits. 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.”
