- Aggressive marketing techniques on forcing customers to make in-app purchases has been a potent weapon for game companies
- Recently the BEUC has charged some major heavyweight game companies regarding the deceptive means to force IAPs
- Any consequential outcome will depend on the European Commission’s pending Digital Fairness Fitness Check
European Consumer Organisation (BEUC) brings charges against seven major game companies including Epic Games, Electronic Arts, and Roblox. The organization filed a complaint on the 12th of September 2024 accusing the companies use deceptive means to force in-game or in-app premium currency (IAPs).
Game companies use aggressive marketing to provoke in-game purchases
The complaint was filed alongside the European Commission and the European Network of Consumer Authorities also includes Activision Blizzard, Mojang Studios, Supercell, and Ubisoft. The 36-page report MONETISING PLAY: Regulating in-Game and in-APP Premium currencies published by BEUC pointed out several concerns regarding the in-game premium purchase. It stated that harmful commercial practices such as loot boxes, deceptive designs, and aggressive marketing were used by these companies to direct the exhortation of children to in-game spending.
“Today, premium in-game currencies are purposefully tricking customers 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,” said Agustin Reyna, the director of BEUC.
While European consumer law remains fully applicable to the gaming sector, there’s little application in the member states. BEUC also stated the limitations of the current legislation and the need to amend it. Concerns relate to the European Commission’s pending Digital Fairness Fitness Check which will benefit the consumers, especially the younger ones.
In a statement to TechCrunch, Video Games Europe responded to the accusation. It said that the game companies align with European consumer laws, and players can enjoy the games without making any purchases.
The complaint recommends a ban on in-game and in-app purchases made by juveniles
European Consumer Organisation (BEUC) also suggested a few recommendations on the raised issues. It calls for a ban on premium currencies in-game and in-app following the result of the Digital Fairness Fitness Check. Besides, the European Commission should monitor purchases made by underaged persons.
But if the ban is not possible, the existing laws should be amended. Other recommendations include conducting a behavioral study, stronger protection and regulation, clarification of consumer law, etc. Forced in-game purchases concern has been going on for a long time. The recent report published by BEUC brought up the concerns and also recommendations to mitigate them.
A similar charge regarding the Loot Box rule was brought against Hutch Games by the UK’s Advertising Standards Authority (ASA) in October 2023. Two of the company’s popular titles Rebel Racing and F1 Clash: Car Racing Manager were allegedly in breach of the UK Code of Non-broadcast Advertising, Sales Promotion, and Direct Marketing (CAP Code).
Read our other news articles:
- Flappy Bird: Iconic platformer returns to Android, iOS, and Web in 2025
- India’s video games industry sees an increase in player spending
- eFootball v4.0.0 Season Update brings weather options
- PUBG Mobile launches “Play for Green” campaign
- Tears of Themis celebrates Vyn Richter’s birthday
Do you think the big gaming companies are doing malpractice with the deceptive use of in-game currency offers? Let us know in the comments below!
For more Mobile Gaming news and updates, join our WhatsApp Group, Telegram Group, or Discord server. Also, follow us on Instagram, Twitter and Google News for quick updates.
