Analyzing the BEUC Complaint Against In-Game Purchases

Between 2012 and 2015, the European regulatory landscape was at its peak, with the UK Advertising Standards Authority frequently ruling against the marketing of free games and the EU CPC Network publishing its common position on consumer protection in online games. However, in recent years, the focus has shifted to loot boxes, with ongoing debates about whether they should be regulated under gambling legislation, youth protection laws, or broader consumer protection legislation. The European consumer group BEUC has published a report criticizing the use of premium currency in in-game purchases, particularly among children and teenagers. The report highlights the need for parental controls and education to prevent unauthorized spending. However, the report also fails to acknowledge the use of mixed currency in many games, which can be earned through gameplay or purchased. The UK Committee of Advertising Practice understands this distinction, and the report suggests that a more holistic approach is needed to assess the economy and gameplay of video games. The BEUC report also explores whether premium currency should be classified as a means of payment under EU consumer law, but this is not supported by the Digital Content Directive. The report highlights the need for more research on virtual currency and the pain of paying, and the games industry must remain vigilant to prevent issues arising around in-game purchases. There are three key areas where games companies need to focus: education, research, and next steps. The industry appears to be entering a new era of regulatory attention in the EU, with the BEUC report summarizing the key arguments submitted to the European Commission as part of a complaint against several games.