European consumer groups have launched a scathing attack on video game companies, accusing them of using manipulative spending tactics to trick consumers, including children, into purchasing in-game virtual currencies.
According to a complaint filed with the European Commission by the BEUC umbrella consumer rights group, video game giants such as Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corp., Supercell, and Ubisoft are guilty of purposefully tricking consumers into overspending on their games.
BEUC head Agustin Reyna stated that premium in-game currencies are designed to deceive consumers and have a significant impact on children. Reyna argued that companies are aware of children's vulnerability and use various tactics to lure them into spending more. Reyna emphasized that children, especially those between the ages of 11 and 14, are highly susceptible to these tactics, due to their limited financial literacy.
Research by BEUC revealed that a staggering 84 percent of children aged 11-14 in Europe play video games, while the in-game purchases market was worth an astonishing $50 billion worldwide in 2020. Furthermore, it was discovered that European children spend an average of 39 euros ($43) per month on in-game purchases.
Europes BEUC umbrella consumer rights group, along with 17 member organizations from countries such as France, Germany, and Italy, has called for stricter regulations to prevent video game companies from exploiting their customers. One proposed solution is to require companies to display the price of digital items in real-world currency, such as the euro, allowing consumers to have a better understanding of the true costs involved.
It is crucial that regulators take action and ensure that the video game industry adheres to real-world rules and regulations to protect consumers.
It remains to be seen whether the European Commission will take further action, but one thing is certain – the video game industry must change its ways and prioritize transparency and fairness in its business practices to regain the trust of its consumers. The hidden spending tactics employed by the industry are designed to deceive and exploit, and it is time for change.