Online

when

Catizen

Epic

A group representing European consumer protection organizations has filed a complaint with the European Commission about the video game industry’s use and marketing of in-game digital currencies.
The European Consumer Organisation (BEUC) and 22 member organizations from 17 countries on Sept. 12 <a data-ct-non-breakable="null" href="https://www.beuc.eu/game-over" rel="nofollow noopener" target="_blank" text="null" title="https://www.beuc.eu/game-over">called</a> for the European Commission and the European Network of Consumer Authorities (CPC-Network) to take stronger enforcement against video game companies that maximize consumer spending by using in-game currencies.&nbsp;
A <a data-ct-non-breakable="null" href="https://www.beuc.eu/game-over" rel="null" target="null" text="null" title="null">report</a> from the watchdogs noted the growth of <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/telegram-based-tap-to-earn-crypto-games" rel="null" target="null" text="null" title="null">in-game purchases</a> using in-game digital currencies, especially in free-to-play games and those played by children, a practice they claimed now generates significant revenues for game companies.
The consumer protection group is concerned that these currencies' dual nature as digital content and means of payment creates legal uncertainty in the European Union.
<blockquote>
 “Following our analysis, we have reasons to believe that consumers fall prey to many deceptive practices when buying premium in-game currencies in video games.”
</blockquote>
The groups argued that consumer rights should apply to purchases made with <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/a-beginners-guide-to-the-gamefi-ecosystem" rel="null" target="null" text="null" title="null">in-game currencies</a>, contrary to some industry claims. It cited research showing that some consumers find these currencies confusing and potentially misleading.
It noted that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/half-telegram-clicker-gamers-crypto-newcomers-blum-creator" rel="null" target="null" text="null" title="null">games</a> often display prices only in their in-game digital currency, without clear conversion to real money, potentially violating EU consumer protection laws. 
The report did not specifically mention cryptocurrencies, but many Web3 <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/gamefi" rel="null" target="null" text="null" title="null">games</a> operate similarly, with tokens used for in-game purchases.
BEUC also stated that in-game currencies can distort consumers’ economic behavior by making real prices less tangible and lowering the “pain-of-paying” effect.
<figure>
 <img alt="Consumer watchdogs call for EU action on in-game digital money" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e970-98db-7d95-862c-db2d66998821">
 <figcaption style="text-align: center;">
 Overview of the unit price of some in-game currencies. Source: BEUC
 </figcaption>
</figure>
Some of the game companies mentioned included Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell and Ubisoft.&nbsp;
The report claimed Epic Games’ flagship game,&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fortnite-gta6-functional-metaverse-before-crypto-nerds" rel="null" target="null" text="null" title="null">Fortnite,</a>&nbsp;can earn up to $2 million per day from in-game purchases, and the average monthly spending by children on in-game purchases increased around 18%, from almost $36 in 2020 to $43 in 2023.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/telegram-clicker-game-catizen-reaches-800-k-paying-users-first-6-months" rel="null" target="null" text="null" title="null">Telegram clicker game Catizen reaches 800K paying users in first 6 months</a>
The organizations called for stronger enforcement and clearer regulatory guidelines to address these gaming industry issues.
On Sept. 12, Eve Online developer CCP Games <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eve-frontier-game-economy-web3-blockchain-create-real-cryptocurrencies" rel="null" target="null" text="null" title="null">announced</a> its upcoming massively multiplayer online survival game, Eve Frontier. The game will allow players to create their own self-contained economies using cryptocurrencies.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/blockchains-gaming-sandbox-latency-sui-web3-gamer/" rel="null" target="null" text="null" title="null">Are there ‘too many’ blockchains for gaming? Sui’s randomness feature: Web3 Gamer</a>

Consumer watchdogs call for EU action on in-game digital money

Cointelegraph

Other articles published on Sep 13, 2024

Bitcoin ETFs rebound with $39M inflows, Ether ETFs in trouble

North Carolina resists the CBDC tide with new payments ban

Ripple Announces Smart Contracts for XRP Ledger, Expanding Features for NFTs, AMMs, and DEXs

Liquid Mercury Partners with Coinhub Exchange to Provide Institutional And Retail Trading Platfor...

Jaringan TRON Catat Rekor Baru untuk Pemegang TRX dan Transaksi USDT

Bitcoin Journey Ends with Heavy Losses, Peter Schiff Says; SEC Signals That Ethereum Is Not Secur...

Join our free newsletter for daily crypto updates!