Premium in-game currencies threaten consumer rights: BEUC submits complaint against leading video game companies

An issue identified by BEUC is the lack of transparency surrounding the cost of in-game purchases. Consumers are often required to buy the premium in-game currencies in bundles, obscuring the true cost, which can lead consumers into unintentional overspending. BEUC argues that in-game purchases should be displayed in real-world currency, or at least, offer a clear equivalent.

Beyond the issue of transparency, BEUC highlighted that consumers are often faced with unfair terms when purchasing premium in-game currencies.

BEUC argues that the Digital Content Directive ensures that consumers have the same rights whether they make a purchase with premium in-game currencies or with real money. However, the video game industry takes a different stance. They believe that a contractual relationship with consumers only occurs when consumers purchase premium in-game currency. From their perspective, it is seen as exercising a license when consumers subsequently make an in-game purchase with their premium in-game currency, and not as forming a new contractual relationship. As a result, consumer rights such as refunds, pre-contractual information on prices and legal guarantees would not apply to these in-game purchases. 

A particular concern raised by BEUC is the impact these practices have on children. More than half of EU citizens between the ages of 6 and 64 regularly play video games, with an impressive 73% participation rate among those aged 6 to 10. According to data from 2023, children in Europe are spending an average of €39 per month on in-game purchases. BEUC’s findings indicate that these young consumers, due to their limited financial literacy and their susceptibility to being influenced by premium in-game currencies making them vulnerable, are being manipulated into overspending. 

As the video game industry generates billions in revenue, with in-game purchases representing a large portion of that income e.g. more than €46 billion in 2020, the video game industry’s reliance on in-game purchases is unlikely to diminish in the near future. BEUC is therefore urging regulatory authorities to address these practices and for the same consumer protection standards apply to the real world as to the digital world. BEUC argues that the need for clearer rules and better protection has never been more urgent. It remains to be seen whether the video game industry will adapt to the growing call for transparency and fair terms.