The EU is Taking Action Against Virtual Currencies in Video Games

We have all probably come across virtual currencies in video games before. Fortnite has V-Bucks, League of Legends has RP (Riot Points) and Call of Duty has COD Points. Since microtransactions have become so prevalent in modern gaming, many companies have come up with their own in-game currency that players have to use in order to purchase premium items. However, these virtual currencies can often times make it unclear just how much you are spending on an item.

An investigation into a game called Star Sable Online (which appears to be an online horse raising, racing and adventure game), has lead the European Commission to combat the potential harms these virtual currencies can pose to children. Star Stable Online appeared to be engaging in practices regarding virtual currencies that were particularly harmful to children.

Some of the specific harms were:

• 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.

In response to the investigation, the European Commission decided to create guidelines that will create a safer gaming environment for children. In doing so the European Commission, created key principles that form the basis for the guidelines. The key principles are as follows:

• 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;

These principles result in game companies being unable to use virtual currencies to hide the actual prices of items purchasable in-game. While virtual currencies will likely remain in games, companies will have to post that actual price of the items that are being purchased alongside the virtual currency price. It should be noted that these are only guidelines and have not been written in law, so it would appear companies can choose to not follow the guidelines if they do not want to.

Discussion Questions:

Do you think the practice of using virtual currencies is harmful to children and does it really result in people spending more than they were intending to? Do you think that these key principles should be made into law instead of just being guidelines in the EU? Should Canada create similar guidelines?

Sources:

https://ec.europa.eu/commission/presscorner/detail/en/ip_25_831

https://www.thegamer.com/european-union-guidelines-combat-predatory-microtransactions-virtual-currencies/

This is the game that lead to the guidelines being made: https://www.starstable.com/