“Premium” virtual currencies are different to the coins and currency that gamers can build up through completing challenges or levels. These premium currencies are purchased for real money and can then be used in the game to buy accessories like weapons or skins or access features like loot boxes.

What are premium in-game currencies? 

About 42% of the top 50 most-played games offer premium virtual currencies, for example Fortnite V-Bucks, Roblox Robux and Minecraft MineCoins which are most often available in bundles or packs. In a similar vein, the use of virtual currency for ‘gifts’ such as those sent to online influencers during a live stream is growing on apps like TikTok and Twitch. 

But behind their cutsie names these currencies are essentially unregulated digital money, controlled by the app or video game company. Players can’t get a grip on the actual value of the currency, and aren’t able to convert them back into real money.

Are consumers getting played? 

The analysis behind the complaint shows that game companies are encouraging consumers to max out their spending on virtual currencies, with children being particularly susceptible. Here are the main areas where premium virtual in-game currencies are problematic for consumers:

• • Obscuring prices: consumers can’t see the real cost of digital items, going against the Unfair Commercial Practices Directive, which says traders must provide clear information on products and on prices in real and local currency, so that people can make fully informed decisions. 
  • Sowing confusion: this lack of price transparency means consumers are not fully aware of the amount they are paying in real currency and the way conversion rates are presented does not help. 
  • Disconnection from ‘real’ spending: behavioural studies have shown that people in gaming environments are much more likely to spend their virtual currency on features and add-ons than via a direct, real currency payment.

• Bundled up: selling virtual currencies in packs or bundles is another way of pushing consumers into spending more than they want or need to.

• Legal grey areas: the games industry claims that once the consumer has purchased the currency, a contract has been fulfilled and further price transparency obligations and rights set out in consumer law are excluded. But a recent finding by the European Commission’s Consumer Protection Network ordered TikTok to provide price transparency after virtual gifts and currency had been purchased. 

• Young gamers: the age, experience and judgement of children and younger players can make them more susceptible to all of the practices employed by companies to encourage the purchase of virtual currencies. They need more protection as vulnerable consumers. 

Changing the game

All of these practices influence the behaviour of gamers to their detriment, and go against key pillars of EU consumer protection legislation. 

Having so far avoided the regulatory scrutiny other virtual currencies are subject to, it’s now time for authorities to act on enforcement and on updating the law.

European consumer law directives covering Unfair Commercial Practices (UCPD), Consumer Rights (CRD) and Unfair Contract Terms (UCTD) are fully applicable to gaming and in-game currency, but these are not properly enforced in Member States.

Straight away, we’d like to see more consistent and proactive enforcement to, for example, tackle unfair terms related to in-game and in-app premium currencies. 

Enforcers could start by taking action on developers whose terms and conditions allow inappropriate spending by children, or have terms which effectively exclude statutory consumer rights like reimbursement or withdrawing from the contract.   

Do in-app currencies pass the Digital Fairness Fitness Check? 

Enforcement of existing legislation can only go so far in addressing the harms and unfair treatment that in-app virtual currencies can lead to. To benefit from a fair and safe online environment where playing games and buying digital content, more action is needed.

Together with BEUC, Euroconsumers’ organizations Testaankoop, Altroconsumo, OCU and Deco, are calling on the The European Commission to take the opportunity of the Digital Fairness Fitness Check to identify additional measures to keep consumers safe and boost their game playing power: 

• Much stricter transparency requirements should be introduced, so that developers have a legal obligation to show what premium in-game and in-app currencies are equivalent to in real and local currency
• Premium currency mechanisms should be turned off by default so that consumers have to make an active choice to opt-in to them, this puts some friction into the journey so that consumers have more opportunities to consider their choices. In the same vein, further transactions and payments need to be approved by a player to guard against impulsive spending, especially by younger players.
• Clarify by law that consumers have the same rights whether they pay with virtual in-game premium currencies or with real currencies 
• Amend the list of ‘presumed unfair terms’ in the Unfair Contract terms Directive to include any contract terms that don’t allow refunds of in-game premium currencies  
• Allow consumers to choose the exact amount of virtual currency they want to buy so they don’t have to overspend on bundles
• Separate out ‘earned’ in-game currency from premium bought in-app currency so it’s easy to see how much people are actually spending when gaming.
• As a last resort, consider a ban of premium currencies in-game and in-app, or if not a full ban, prohibition children accessing and using them. If a ban is not deemed necessary, then much stronger transparency is needed.

Empower players, improve the gaming market 

Gaming has gripped the world, and Euroconsumers want to be part of making it enjoyable, safe and fair for all.  In 2023, we published a major consumer study of the impact of gaming on people’s wellbeing and mental health. 

Earlier this year we hosted a webinar that unraveled the competitive dynamics in the gaming world and asked if gamers were getting a raw deal on consoles and devices. And we called on Epic Games to roll out the changes to limit pressure selling in the Fortnite game, as demanded  by the Dutch authorities to children in every country. 

This latest call for changes to the in-app virtual currency system are part of our drive to empower players and improve the gaming market. 

In-game currencies and can be a fun and motivating part of game play. We don’t want to stop all of that, but instead make sure the companies offer them in a fun, safe and fair way that doesn’t leave players with an empty wallet.   

Rewatch our April 2024 webinar on gaming featuring European Games Developer Federation, Milberg London LLP, Games Investor Consulting, Tilburg University: My Gaming Device is Mine: Is Big Gaming letting us play? | Euroconsumers