Photo credit: Tima Miroshnichenko/Pexels
Gaming giants are preparing for a new kind of fight as the European Consumer Organisation (BEUC), along with its member organizations from 17 countries, has submitted a complaint to European Union authorities regarding unfair trading practices in video games.
According to BEUC, video game companies such as Activision Blizzard, Electronic Arts, Epic Games, Supercell, and Ubisoft have breached the EU consumer protection laws. The consumer watchdog group has called on the authorities to ensure the “traders play by the rules and provide consumers with safe gaming environments.”
The alert sent to the European Commission and the European Network of Consumer Authorities (CPC-Network) highlights that consumers are unable to see digital items' real cost and lack transparency, forcing consumers to spend more.
BEUC claimed video game companies must always display in-game purchases in real money or equivalent to real-world currency.
When companies claimed that gamers preferred in-game premium currencies, the consumer watchdog group claimed that false statement. Consumers prefer to buy items “directly with real money.”
Additionally, BEUC claimed that consumers are often denied their rights “when using premium in-game currencies, tied to unfair terms favoring game developers.”
Data shows children are the ones who play video games the most and spend an average of $44 per month on in-game purchases. Due to their limited financial literacy, BEUC claims children easily fall for the video game companies’ “manipulative tactics.”
Highlighting the issues of malpractices in the video game industry, Agustín Reyna, Director General of BEUC, commented:
“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.”
Furthermore, the problems mentioned in the complaint also apply to social media platforms and other marketplaces. In conclusion, BEUC stated that better enforcement of the consumer law framework in the video game sector is essential.