Game companies accused of manipulating children with in-app, in-game purchases

The world’s largest video game companies manipulate consumers, including children, to spend money on in-game purchases, the BEUC, the umbrella organization for consumer associations in Europe, said in a complaint filed with the European Commission on Thursday. The Dutch consumers’ association, Consumentenbond, and 16 others support the complaint, which specifically names video game companies Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft.

According to the BEUC, half of Europeans aged 6 to 64 play video games. Among children, three-quarters play on a regular basis. “Harmful commercial practices are bursting into the sector: from loot boxes to deceptive designs, and from aggressive marketing to direct exhortation of children for in-game spending.”

“One type of in-game purchase that is especially problematic to consumers is the so-called in-game or in-app premium currency,” the BEUC said. Because these in-game currencies are typically not euros, gamers quickly lose track and could end up spending more than they want. Children are particularly vulnerable to this.

According to BEUC, the companies behind popular games like Fortninte, Minecraft, and EA Sports FC 24 know this and are, therefore, deliberately manipulating consumers and children, in particular. Member States are fully capable of acting against these practices with existing European consumer law but enforce it insufficiently, the BEUC said.

According to the Consumentenbond, children spend an average of almost 40 euros per month on in-game purchases. “The gaming industry is pulling out all the stops to get consumers to spend as much money as possible,” said Consumentbond director Sandra Molenaar. “Also, when it comes to children, who are extremely vulnerable. That has to stop immediately.”

“Gamers should not need a calculator to find out how much an in-game purchase is. That must be clear at a glance,” Molenaar said. “In addition, developers must respect the rights of gamers. That is why we have asked the supervisors to intervene.”

The European industry association for games, Video Games Europe, opposes the accusations, calling in-game purchases “standard practice” that is “well understood by players.” The sector’s code of conduct already states that game companies must make clear what the actual costs are. “Our members always respect European consumer laws,” the association said, according to ANP.