Gaming companies have been given helpful advice on how to protect children in recent days.
The CPC Network consists of national authorities responsible for enforcing EU consumer protection legislation. The Network is coordinated by the European Commission and works to address widespread infringements of EU consumer laws, many of which have an extraterritorial effect on companies targeting EU consumers.
Guidelines
The Network has now published guidelines aimed at promoting transparency and fairness in the online gaming industry's use of virtual currencies. This follows concerns raised by the European Consumer Organisation (BEUC). The key principles outline the minimum requirements for the purchase and use of virtual currencies, including:
- 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;
- respecting consumers' cancellation rights; and
- taking into account consumer vulnerabilities, in particular those of children.
The CPC Network will monitor progress and may take further actions if harmful practices continue.
The key principles are based on existing consumer law. However, the Commission will continue to examine the issues when it consults about the planned Digital Fairness Act.
Enforcement action
Alongside this, following a complaint by the Swedish Consumers' Association, the CPC Network asked Star Stable Entertainment AB to provide information on commercial practices that children might encounter in their game, Star Stable Online. The CPC Network has reviewed Star Stable's reply and says that there are number of practices that violate EU consumer protection legislation and that could be particularly harmful to children, such as:
- 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 to ensure that the influencers promoting their products clearly disclose commercial content and do not unduly influence children with their marketing techniques.
Star Stable Entertainment AB has now one month to provide a written response addressing the issues and to make proposals to remedy them. BEUC has welcomed the action.
The CPC Network emphasises the need for video games and their commercial practices to be adapted to children.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
