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In response to concerns regarding in-game monetization practices, the European Union has introduced new guidelines aimed at enhancing transparency in the sale of virtual currencies in video games, particularly those aimed at younger audiences. This initiative was prompted by a complaint related to Star Stable, a popular free-to-play horse game designed for children.
The Consumer Protection Cooperation Network (CPC) of Europe has confirmed its intentions to enforce changes that require publishers to present the costs associated with in-game purchases more clearly.
These guidelines specifically target the transparency of in-game currencies, compelling game developers to clearly display the real monetary cost of items alongside in-game prices. Games operating within the EU that fail to comply with these regulations risk facing legal action.
Although the implementation of these changes will not happen overnight, the CPC is advocating for swift action. In fact, Star Stable has been given a month to respond to the EU’s call and demonstrate a commitment to implementing the necessary modifications. It remains to be seen how other game publishers will adapt to these new standards.
EU implements regulatory changes regarding microtransactions
The essence of these principles is to ensure that in-game currency is treated as comparable to real-world money in terms of legal obligations. This removes any potential for exceptions regarding how game currencies are presented.
As a result, it will be mandatory for games to display both the in-game currency price and the equivalent price in Euros for any purchasable items.
The EU’s guidelines do not outright ban in-game currencies; instead, they mandate that the actual purchase price be visible alongside the in-game cost.
This requirement extends to items that may also be available for free through gameplay. If an item can be purchased with real money, its price must be listed, regardless of alternative methods for acquiring it.
For instance, in Marvel Rivals, players can earn skins through free in-game currency, but the real-world price for these skins must still be indicated, even if a free option exists.
Thus, for bundles, both the price in Euros and the original price before any discounts must be displayed clearly.
However, there are loopholes. The new regulations do not encompass items, such as skins in Battle Passes, that must be earned through gameplay, as they cannot be directly purchased.
Additionally, the regulations prevent games from requiring players to purchase multiple currencies to acquire an item, as this practice obfuscates the true cost.
A significant new rule prohibits the practice of selling currency in packages that leave players short of the necessary amount required for individual items, a tactic often used in many games.
For example, in League of Legends, the pricing structure for its in-game currency, RP, often leads players toward purchasing larger amounts than they might need, influencing their spending behavior.
It is crucial to note that this is not exclusive to League of Legends; many games utilize similar strategies, and these new guidelines seek to curb such practices.
The principles emphasize that “traders should not engage in practices that distort the economic behavior of consumers by designing games in ways that compel consumers to spend more real-world money on in-game currency than necessary for the desired content or services.”
Moreover, the guidelines mandate that sellers provide a minimum refund period of 14 days for in-game currency purchases, although they may still restrict returns for the associated items themselves.
The complete list of principles outlines various other actions for companies to consider, and you can access the full document here. These principles will have immediate ramifications for developers involved in microtransaction sales, prompting significant changes to their in-game store formats.
Ultimately, these modifications aim to protect vulnerable players, particularly children, from deceptive marketing practices.
“Given that children spend extensive time online, they become prime targets for marketers. It is vital to create a secure online environment for consumers, especially younger ones, to ensure they can enjoy gaming free from exploitation,” remarked Michael McGrath, Commissioner for Consumer Protection.
“I fully support the CPC network’s initiatives and look forward to collaborating with the gaming industry to safeguard consumers and children alike.”
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www.dexerto.com