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Seven of the gaming industry's biggest names—Epic Games, Electronic Arts Inc (NASDAQ:EA), Roblox Corp. (NYSE:RBLX), Microsoft Corp.‘s (NASDAQ:MSFT) Activision Blizzard, Mojang Studios, Tencent Holdings Ltd. (OTC:TCEHY) Supercell, and Ubisoft Entertainment SA (OTC:UBSFF)—are facing new accusations from the European Consumer Organisation (BEUC) of deceiving players into overspending on in-game purchases.
The BEUC's complaint, filed Thursday alongside the European Commission and the European Network of Consumer Authorities, calls for urgent action to address what it describes as “deceptive tactics” used by these companies to mislead consumers, particularly children, into spending more money than they intend.
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GamesIndustry.biz reports the complaint alleges that companies “trick” consumers into overspending through the use of in-game currencies, a common feature in popular video games.
The BEUC has called for a ban on paid in-game currencies or, at the very least, a prohibition on their use by players under 18. The organization further demanded better protection for consumers by clarifying their legal rights when it comes to these transactions.
“The online world brings new challenges for consumer protection, and it shouldn’t be a place where companies bend the rules to increase profits,” said BEUC's director general Agustin Reyna.
“Companies are well aware of children’s vulnerability and use tricks to lure younger consumers into spending more,” Reyna added.
In response to the allegations, Video Games Europe, an industry representative body, defended its members, asserting that they respect European consumer laws.
A statement shared with TechCrunch said: “Players can experience entire games without spending any money, giving them the opportunity to try games without any upfront cost or commitment.”
The group also insisted that its members support and promote “fair and transparent principles” for in-game purchases, including currency systems.
The organization further pointed to the PEGI Code of Conduct, which requires that the real-world cost of in-game currency be “clear and unambiguous at the point of purchase.”
This is far from the first time major games companies have faced scrutiny for their monetization practices. EA, for instance, has long been under fire for the use of loot boxes in its popular FIFA Ultimate Team mode, which sparked a class-action lawsuit in 2020. Critics have claimed that the loot boxes are a form of gambling, particularly given their appeal to younger audiences.
In 2022, the U.S. ordered Epic Games to pay $520 million to settle charges. The FTC accused the Fortnite maker of using deceptive techniques to trick users into making unwanted charges and violating children's privacy laws.
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