Video game companies including Epic Games, Electronic Arts and Roblox were hit with an EU consumer complaint on Thursday, accused of misleading gamers into spending money.
The complaint was filed as concerns grow over children becoming addicted to video games, with some parents claiming game developers are deliberately creating products to foster addiction.
The European Consumer Organisation (BEUC), alongside 22 member groups across Europe, including in France, Germany, Italy and Spain, lodged the complaint with the European Commission and the European Network of Consumer Authorities.
The groups accused the companies of using “manipulative spending tactics” involving in-game virtual currencies, which they said children are “even more vulnerable to.”
"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," said BEUC Director General Agustin Reyna.
The complaint targets Epic Games, Electronic Arts (EA.O), Roblox
The complaint targets some of the biggest names in gaming, including Epic Games, Electronic Arts, Roblox, Microsoft, Activision Blizzard, Mojang Studios, Supercell (majority-owned by China's Tencent) and French company Ubisoft.
These firms are behind popular titles such as Fortnite, EA Sports games, Minecraft, and Clash of Clans.
Vulnerable consumers
"Premium in-game currencies are purposefully tricking consumers, and this takes a big toll on children. Companies are well aware of children’s vulnerability and use tricks to lure younger consumers into spending more," Reyna said.
The organisations expressed concerns that consumers, particularly children, often fail to recognise the true cost of digital items, leading to overspending. They also argued that consumers are frequently denied their rights when using premium in-game currencies.
Virtual currencies, such as gems, points or coins, can be bought with real money in games or app marketplaces. When used to buy options or items within games, the groups claim, players lose track of the real amounts being spent, leaving them vulnerable to overspending.
BEUC noted that 84 percent of 11 to 14-year-olds in Europe play video games, with the in-game purchases market valued at around $50 billion worldwide in 2020.
In 2023, a study led by Ipsos and Video Games Europe revealed that children in Europe making in-game purchases spend an average of €39 each month on various gaming extras.
BEUC's legal action targets the major video game publishers across mobile, PC and console platforms, accusing them of violating EU consumer protection laws.
"Gamers shouldn’t need to rely on a calculator anytime they want to make an informed decision on how much they want to spend," Reyna added.
The organisation recommended that real-life currency be used instead of virtual currencies, to give consumers a clearer understanding of the money they are spending.
(with newswires)