Video games are among the most profitable apps globally, generating over $50 billion annually through in-game purchases and digital goods. However, a prominent consumer group in Europe has accused games publishers of deceiving consumers, particularly minors, into making purchases. They are now advocating for a ban on current in-game payment practices.
The BEUC has lodged a complaint in Europe on behalf of consumer groups from 17 countries, alleging unfair practices and violations of consumer protection laws in games featuring in-app payments. Notable games mentioned in the complaint include Fortnite, Clash of Clans, Minecraft, and FIFA 24.
According to the complaint, consumers, especially those under 18, end up overspending in games due to unclear cost structures. Under-18 gamers are reportedly spending an average of €39 per month on in-game purchases, prompting the BEUC to call for stricter regulations.
You can find the BEUC’s full complaint here.
The BEUC has proposed several recommendations to European regulators, including a potential ban on in-game currencies and stricter age ratings considering in-app purchases. The group emphasizes the need for transparency in pricing structures and safeguards to prevent deceptive practices.
Agustín Reyna, Director General of BEUC, stated, “Regulators must enforce real-world rules in the virtual gaming environment to protect consumers, especially vulnerable children.”
The BEUC’s complaint arises from the prevalence of in-app purchases in popular video games, with in-game transactions surpassing revenues from cinema and music industries combined. The group urges regulators to address the financial risks faced by minors engaging in these activities.
This isn’t the first time BEUC has targeted in-app currencies; in 2021, the group filed a complaint against TikTok over virtual currency issues. The ongoing battle with TikTok highlights the BEUC’s commitment to consumer protection in the digital realm.
84% of 11-14 year olds play video games in Europe
The BEUC’s advocacy reflects the high engagement of minors in video games, with 84% of 11-14 year-olds regularly playing on mobile or other screens. Given their limited financial awareness, this demographic represents a significant concern in the context of in-game purchases.
By targeting the gaming industry as a whole, BEUC aims to elevate the discussion on consumer protection, potentially strengthening their position in addressing these issues.
