In-game purchases & virtual currenciesEU takes action against rip-offs in mobile games

The new guidelines of the Consumer Protection Cooperation Network are divided into seven main points, which set out the following requirements:

1. Prices must be stated clearly and transparently.
2. The concealment of real costs of content and services should be avoided.
3. Consumers should not be forced to buy unwanted virtual currencies.
4. Consumers should receive clear and understandable information before concluding a purchase contract 
5. Consumers' right of return should be respected.
6. Sales contracts should be formulated fairly and in easy-to-understand language.
7. The design and content of games should take into account that people with disabilities and vulnerabilities also use them.

The 8-page document gives many examples of how these rules affect games and which manipulative techniques must now be avoided. In future, the price of a virtual item should no longer be quoted exclusively in a virtual fantasy currency (such as crystals or diamonds). The real price in euros should always be clearly visible next to it.

It should also no longer be possible in future for virtual currencies to be offered only in packages, forcing consumers to buy higher amounts than they actually need.

The seventh point is particularly relevant for children and young people. As they are still developing and may not have developed enough financial skills or impulse control, they are considered a vulnerable group. Game providers must therefore not only ensure that there are safe default settings and opportunities for parental supervision and control. They should also prevent their games from deliberately exploiting these vulnerabilities.

All points in the guideline explicitly refer to applicable European law. For example, to the Unfair Commercial Practices Directive. However, the Consumer Protection Cooperation Network also makes it clear that a breach of the new guidelines does not automatically constitute a breach of the law. Only courts can determine whether European or national law has been violated. However, the guidelines can be seen as a clear signal to providers that consumer protection organizations are prepared to take legal action in the future against companies that continue to use manipulative techniques to the detriment of consumers in their games.

The business with in-game purchases is now a global market worth billions. global market worth billions. Against this background, it is not surprising that the games industry sees no reason to change anything about the current situation. Just one day after the guidelines were published, the European Game Developers Federation issued a statement issued a statement. The German industry association GAME is also part of this association. The European Game Developers Federation sees no reason for changes, as the existing protective measures and voluntary commitments are sufficient. It also doubts whether the legal interpretation of European consumer protection law in the guidelines is correct. This is now to be examined.