The European Commission, or rather the Consumer Protection Cooperation Network (CPC), has published a set of guidelines meant to combat predatory monetization in online games. Specifically, those guidelines are meant to prevent children from spending large amounts of money in online games that are encouraging them to do so. Here's a broad overview of what game devs have to do:

  • clear and transparent pricing and pre-contractual information;
  • avoiding practices hiding the costs of in-game digital content and services, as well as practices forcing consumers to purchase virtual currency;
  • respect of consumers' right of withdrawal;
  • respecting consumer vulnerabilities, in particular when it comes to children;

You can read more details about these guidelines on the dedicated page. This is the result of complaints against Star Stable Entertainment AB, a Swedish game developer responsible for Star Stable Online, an MMO about horse riding. The CPC has determined that their monetization system was too predatory, and the devs have one month to remedy that. Check out their dedicated page for more details on the matter.

Right now, it's unclear how this will affect other developers, and these guidelines are just that, guidelines, not hard rules that must be followed. That said, the Commission mentioned that they will continue to examine these topics, and will take further action should the need arise. This is yet another move against the industry's more unhealthy practices, following the formation of an industry-wide union from a few days ago.

Quote From European Commission

Coordinated by the European Commission, the Consumer Protection Cooperation Network (CPC) has launched an enforcement action against Star Stable Entertainment AB to ensure a safer, more transparent experience for players of the Star Stable Online game. In addition, the CPC Network is presenting today key principles to help the gaming industry comply with the EU consumer protection rules related to in-game virtual currencies.

Coordinated enforcement action against Star Stable Entertainment AB

Following a complaint by the Swedish Consumers' Association, the CPC Network, coordinated by the Commission, has launched a coordinated action requesting Star Stable Entertainment AB to provide information on commercial practices that children might encounter in their game, Star Stable Online. The CPC Network's assessment of the reply provided by the company identified a number of practices that violate EU consumer protection legislation and that could be particularly harmful to children, such as:

  • direct appeals to children in the advertisements, urging them to buy, or persuade adults to buy for them, in-game currency or items;
  • the use of pressuring techniques such as ‘purchase through time-limited practices' to unduly influence children to purchase in-game virtual currency or in-game content;
  • a lack of clear and transparent information, adapted to children, about buying and using in-game virtual currency, leading consumers to spend more than they intend to;
  • failure by the company to ensure that the influencers promoting their products clearly disclose commercial content and do not unduly influence children with their marketing techniques.

Star Stable Entertainment AB has now one month to provide a written response addressing the issues highlighted in the CPC Network's common position and to propose commitments to remedy them.

With this action, the CPC Network emphasises the need for video games and their commercial practices to be adapted to children and to not exploit their vulnerabilities.

Key principles for trustworthy online gaming environment

The CPC Network, coordinated by the European Commission, is publishing a set of guidelines today to promote transparency and fairness in the online gaming industry's use of virtual currencies. The key principles outline the minimum requirements for the purchase and use of virtual currencies, including:

  • clear and transparent pricing and pre-contractual information;
  • avoiding practices hiding the costs of in-game digital content and services, as well as practices forcing consumers to purchase virtual currency;
  • respect of consumers' right of withdrawal;
  • respecting consumer vulnerabilities, in particular when it comes to children;

The key principles published today address concerns raised by the European Consumer Organisation (BEUC). They will help create a safer, more transparent experience for players. The European Commission will be hosting a workshop where gaming companies operating in the EU will be encouraged to present concrete steps, they will take to implement these key principles. The CPC Network will monitor progress and may take further actions if harmful practices continue.

The key principles and the Common Position are based on the existing general rules of EU consumer law directives that apply to digital services and digital content provided to consumers, including video games. The Commission will continue to examine these topics in the context of forthcoming consultations on the Digital Fairness Act.

Background

The CPC Network is formed by national authorities responsible for enforcing EU consumer protection legislation. These authorities work together under the coordination of the European Commission, to address widespread infringements of EU consumer laws occurring in the Single Market. The Commission assisted the CPC Network led by the Netherlands Authority for Consumers and Markets and the Norwegian Consumer Authority to adopt the Key Principles on In-Game Virtual Currencies. With the Commission as a coordinator, the Swedish Consumer Agency and the Norwegian Consumer Authority, are leading the work of the CPC Network in the coordinated action on Star Stable Online.

The European Commission supports and contributes to raising consumer awareness of practices in video games that may be harmful to consumers. The Better Internet for Kids (BIK+) strategy was put in place to improve accessibility, age-appropriate digital services and to ensure that every child is protected, empowered and respected online. An educational toolkit for young consumers was developed by the European Consumer Centres Network during the 2022 European Year of Youth addressing some of these issues.

What do you think about this development? Do you expect it to have an effect on the industry as a whole? Let us know in the comments below!