European Consumer Groups File Complaint Over In-Game Digital Currencies

According to Cointelegraph, a coalition of European consumer protection organizations has lodged a complaint with the European Commission regarding the use and marketing of in-game digital currencies in the video game industry. The European Consumer Organisation (BEUC) and 22 member organizations from 17 countries have urged the European Commission and the European Network of Consumer Authorities (CPC-Network) to enforce stricter regulations on video game companies that encourage consumer spending through in-game currencies. The watchdogs' report highlights the increasing prevalence of in-game purchases using digital currencies, particularly in free-to-play games and those popular among children. This practice, they argue, generates substantial revenue for game companies. The consumer protection group expressed concerns about the dual role of these currencies as both digital content and a means of payment, which creates legal ambiguities within the European Union. The groups believe that consumers are often misled when purchasing premium in-game currencies. They argue that consumer rights should extend to purchases made with these currencies, countering some industry claims. Research cited in the report indicates that some consumers find these currencies confusing and potentially deceptive. The report also points out that games frequently display prices solely in their virtual currency, without a clear conversion to real money, which may violate EU consumer protection laws. Although the report does not specifically mention cryptocurrencies, it notes that many Web3 games operate similarly, using tokens for in-game purchases. BEUC also stated that in-game currencies could distort consumers' economic behavior by making real prices less tangible and reducing the 'pain-of-paying' effect. The report mentions several game companies, including Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft. It claims that Epic Games' popular game Fortnite can generate up to $2 million per day from in-game purchases, with average monthly spending by children on these purchases increasing by approximately 18%, from nearly $36 in 2020 to $43 in 2023. The organizations have called for stronger enforcement and clearer guidelines from regulatory bodies to address these issues within the gaming industry. On Sept. 12, Eve Online developer CCP Games announced its upcoming massively multiplayer online survival game, Eve Frontier, which will allow players to create their own self-contained economies using cryptocurrencies.