European watchdogs demand game companies stop predatory virtual currency sales to children | These common sense rules would protect adults just as much as children
https://www.techspot.com/news/107270-european-watchdogs-demand-game-companies-stop-predatory-virtual.html
10 Comments
From the article: Europe’s Consumer Protection Cooperation Network (CPCN) has initiated an enforcement action with the European Commission (EC) to reign in the predatory monetization of a gaming company called Star Stable Entertainment, maker of the MMORPG/horse simulation “Star Stable Online.” The CPCN aims to force the developer to be more transparent about the actual costs of in-game purchases. It’s asking for a soft ban on in-game currency since no formal laws explicitly prohibit it.
Like many other game companies, Star Stable obfuscates the actual cost of in-game products by listing them in the game’s virtual currency, “star coins.” The problem is that star coins aren’t a one-to-one conversion to euros. In fact, this monetization model intentionally makes currency conversion practically impossible. It does this through bundled coin packages sold at a “discount.” Star Stable Online’s target demographic is young players, but even adults would have difficulty confirming exactly how much a purchase costs them.
The CPCN’s action stems from a Swedish Consumers’ Association complaint. After investigating, the CPCN noted several areas that appear predatory, especially toward children. These include:
*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.*
These marketing gimmicks are relatively common and work just as well against adults as with children. The sole difference is that adults spend their money (or credit) instead of their parents’ funds. Both organizations are asking the company to be more transparent about the commercial purchases children may encounter in the game.
Anyone who knows anything about gaming knows how this ends.
There’s too much money in microtransactions now, sure the EU will start by targeting a small player, but the bigger ones stand to lose billions, and won’t hesitate to spend some of that to make this quietly go away, or at best adjust their systems to accommodate the law while not removing the actual harms.
Monetization in video games is gambling at it’s worst, an entirely digital space that can morph to have the maximum effect on its target audience, while changing to skirt gambling laws. The fact that governments have allowed this to become so widespread is going to be written about in textbooks about addiction disorders once generation alpha hits adulthood.
Even if we ignore the gambling aspect, I watched my nephew play Roblox the other day, it’s packed to the rafters with bright flashing ads for in game items, occupying huge amounts of screen space, using their currency so you don’t associate spending real money with a purchase. It’s manipulative, and these constant temptations to spend shouldn’t be allowed in any media, much less media targeting children
The gambling generation has already been prompted. Reactive measure are a welcome bandaid, but you failed the original responsibility
Loot boxes are gambling, stop pretending they’re not.
I personally think they’re actually worse than gambling since you’re throwing money at something with zero monetary value.
Gambling companies are always 5 steps ahead. But nice to see EU making moves at them.
But Epic won’t be a multimillion dollar company that’s trying to sue Apple to sell more Vbucks without giving Apple a share…
virtual currencies you pay money for should just be banned, full stop. It serves no other purpose than to manipulate people
Why is it always the government’s responsibility to protect people? Protect yourself and your own kids. Getting the government involved makes everything 10x more complicated and inefficient and reduces personal liberties
Man, I can’t wait for virtual currency in videogames to be banned only for a more predatory system to be implemented.
We have virtual currency and battle pass because videogame companies moved away from lootboxes because of the EU.
I agree that any kind of obsfuscated currency or gambling mechanism is predatory. However, when used in legal matters, the term “common sense” is usually attached to some bogus “feel good” ideas. Don’t use this phrase when, well, just don’t use it. We need our experts and this kind of rhetoric is belittling.