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Gulf Press > Business > Crypto > Consumer Group in EU Expresses Concerns About Cryptocurrency Use in Video Games
Crypto

Consumer Group in EU Expresses Concerns About Cryptocurrency Use in Video Games

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Last updated: 2024/09/14 at 7:10 PM
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In a recent development, the European Consumer Organisation (BEUC) has lodged a complaint against video game publishers, accusing them of deceptive practices linked to in-game purchases. The complaint, filed on behalf of consumer groups from 17 countries, claims that game publishers mislead consumers, especially children, into spending excessive amounts on in-game purchases. According to the BEUC, in-game purchases generate over $50 billion in revenue annually worldwide and often obscure the actual costs of digital goods, making it challenging for consumers to discern their spending.

The organization asserts that children are particularly vulnerable to these tactics, with young gamers reportedly spending an average of €39 per month on in-game purchases. Popular titles such as Fortnite, Clash of Clans, Minecraft, and EA Sports FC 24 are among those mentioned in the complaint. BEUC has urged European regulators to implement stronger measures to safeguard consumers from these practices, including banning paid in-game currencies that disguise the true cost of items and services within games.

BEUC also demands stricter age ratings for games featuring in-game purchases, increased transparency regarding costs, and clearer warnings when players are about to spend money. Agustín Reyna, BEUC’s director general, emphasized the need for companies to adhere to consumer protection regulations and ensure transparency in the virtual gaming world. Reyna criticized the use of premium in-game currencies, stating that they lead consumers to overspend, especially children. The organization’s stance is backed by the Digital Fairness Fitness Check, which was updated in August.

Despite BEUC’s assertions, the gaming industry has defended its use of in-game currencies, citing them as a well-established practice that complies with European consumer laws. Video Games Europe, a trade group representing major video game companies in the region, underscored that many games offer free access for players to try without upfront costs. The industry also highlighted that it adheres to the PEGI Code of Conduct, ensuring clear disclosure of real-world costs associated with in-game currencies. However, BEUC’s complaint sheds light on the growing controversy surrounding in-game purchases, especially concerning younger consumers.

A 2023 report by the European Parliament revealed that over half of all EU consumers regularly engage in playing video games, with 84% of children aged 11 to 14 participating in gaming activities on mobile or other devices. Given children’s limited financial literacy and personal funds, the utilization of in-game currencies poses a significant challenge for regulators and consumer advocates. BEUC’s recent complaint against video game publishers continues its efforts to address issues related to digital currencies in apps, following a previous complaint against TikTok in 2021, which led to changes in how purchases were displayed.

Overall, the dispute between BEUC and the gaming industry highlights the need for stronger consumer protections in the virtual gaming world, particularly concerning the transparency of costs and the impact of in-game purchases on vulnerable populations like children. As the regulatory landscape evolves, it remains crucial for industry stakeholders, consumer advocates, and policymakers to work together to establish fair and clear guidelines that balance the interests of both consumers and game developers in the fast-growing digital gaming sector.

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News Room September 14, 2024
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