Companies such as Epic Games (Fortnite), Supercell (Clash of Clans) and Electronic Arts (EA Sports FC 24) are accused of using virtual currencies in their games to deceive consumers.
Consumer organisations announced on Thursday that they had filed a complaint with the European Commission against “unfair practices” video game publishers that push players, especially children, to spend more. Companies such as Epic Games (Fortnite), Supercell (Clash of Clans) or Electronic Arts (EA Sports FC 24) are accused of using virtual currencies in their games, such as gems or coins, to deceive consumers.
These currencies, sold online, then allow the purchase of objects or customization options within games, while hiding the real costs for users, deplore the complaining organizations. Virtual currencies “deliberately mislead” players, especially the younger ones, says Agustin Reyna, director general of the European Consumer Organisation (BEUC).
This federation has joined forces with 22 member organisations from 17 countries – including UFC-Que Choisir in France, Vzbv in Germany, Testachats in Belgium and the FRC in Switzerland – to alert the European Commission. “Companies are well aware of the vulnerability of children and are using tricks to encourage young consumers to spend more”says Agustin Reyna.
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$50 billion in revenue
Just over one in two Europeans entertain themselves with video games, a rate that rises to 84% among 11-14 year-olds. Children spend nearly 40 euros per month on purchases within video games, estimates Beuc. Seven major publishers, including Activision Blizzard and Ubisoft, “breach European consumer protection laws”consumer associations say. They call on the authorities to “ensure that companies follow the rules” and also want stricter legislation in the coming years.
Deploring the “lack of transparency” induced by virtual currencies, they demand in particular that the prices of objects sold within games be expressed “in real money”. “Gamers should not need a calculator every time they want to make an informed decision about how much they want to spend (…). Deceptive practices must stop.”argues Agustin Reyna. In 2020, in-game purchases generated more than 50 billion dollars (46 billion euros) and their share in publishers’ revenues has continued to increase in recent years, according to Beuc.
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