EU Prohibits Games from Concealing Microtransaction Costs with Virtual Currency

Currently, online gaming can lead to sizable expenses due to the continuous rise in costs for items like cosmetic skins and emotes. Titles such as Marvel Rivals, Overwatch 2, and Fortnite heavily rely on microtransaction sales, making it easy for players to overspend on virtual currencies without realizing it.

Recently, Genshin Impact faced scrutiny for similar issues as the FTC alleged the game concealed the costs associated with obtaining rare characters from loot boxes. The European Commission and CPCN are now addressing these concerns by releasing new guidelines on virtual currencies, following an investigation into Star Stable Online.

EU Prohibits Games from Concealing Microtransaction Prices with Virtual Currency

The investigation revealed that Star Stable Online engaged in practices deemed “especially harmful to children,” underscoring the necessity for enhanced consumer protection across Europe. Consequently, new guidelines have been established consisting of seven essential principles for dealing with virtual currencies:

• Clear and transparent price indications are mandatory.
• Practices that obscure the costs of digital content and services should be eliminated.
• Companies should refrain from compelling consumers to purchase unnecessary in-game virtual currencies.
• Consumers must receive clear and complete information before making purchases.
• Consumers’ right to withdraw from transactions should be upheld.
• Contract terms should be fair and articulated in simple language.
• The design and gameplay of games should consider different consumer vulnerabilities.

While this may seem like a lot, a key takeaway is that developers and publishers are now prohibited from hiding microtransaction prices using virtual currencies without risking violation of these guidelines. Although this doesn’t mean virtual currencies will disappear, it does require that online games released in the EU clearly display the actual cost of cosmetic items purchasable with them.

It is important to note that these guidelines are not legally mandatory, meaning developers could choose to ignore them, but doing so may expose them to lawsuits. Should litigation occur, plaintiffs will have the support of the European Commission and CPCN backing. This creates a strong deterrent, with the CPCN indicating they will “monitor progress and could take additional actions if harmful practices persist.” However, it’s worth mentioning that this only applies within the EU, leaving other regions like the UK and US with the likely continued obscuring of microtransaction prices for the time being. Nonetheless, any progress is an achievement.