ACM and European consumer authorities: the use of in-game virtual currencies must be clearer in order to protect consumers
Summary
- Money in online games is often presented in a different form, as a result of which it is not clear that it is money.
- At the European level, key principles have been drawn up, with which game companies must comply.
- The cost of an item must always be presented in a real-world currency. The gaming industry will be reminded of these rules.
In order to better protect European consumers, the Netherlands Authority for Consumers and Markets (ACM) together with the European consumer authorities have drawn up key principles on in-game virtual currencies. The most important principle is: even if the money is presented in a different form within the game, for example as diamonds or gold coins, it must be clear to players that they are spending real money. Therefore, the cost of an item must always be presented in a “real-world currency,” and this must be presented in a clearly visible manner for all items. Moreover, the rules that protect consumers when they purchase something must be applied in full to in-game purchases.
Edwin van Houten, Director of ACM’s Consumer Department, says: “People spend a lot of time as well as money on online games. It is important that they are aware that they are spending real-world money if they spend money within games. At the EU level, we have now agreed on common key principles. If the game company targets children, even stricter rules apply.”
Key principles on in-game virtual currencies
The key principles on in-game virtual currencies that the European consumer authorities have drawn up together are an interpretation of the existing consumer-protection rules. ACM and the Norwegian consumer authority led the process of drawing up these key principles. Many game providers do not yet comply with the key principles. In order to bring attention to these key principles as well as to promote compliance therewith, they will be discussed with representatives of the gaming industry soon.
Star stable online
As some games are primarily played by children, developers of such games must comply with the rules that protect children. For example, children cannot be exhorted to make in-game purchases. In the Star Stable Online game of Swedish game developer Star Stable Entertainment AB, the European consumer authorities found several elements that were at odds with the key principles on in-game virtual currencies, as well as at odds with consumer protection rules. In the game, which is appealing to children, players are exhorted to make purchases. This is not allowed. In addition, countdown timers are used to put pressure on players to make decisions quickly, and prices of items are not presented in “real-world” currencies. The European consumer authorities have confronted the Swedish company behind the Star Stable game with these findings, so that it has the opportunity to adjust the game. If it fails to do so (or if it fails to do so sufficiently), individual national consumer authorities are able to take enforcement actions. Previously, ACM had imposed a fine on gaming company Epic for using unfair commercial practices aimed at children in its Fortnite game.