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European Commission’s Consumer Protection Cooperation Network focusing on nine online gaming companies in investigation
Ireland’s consumer watchdog has joined forces with its counterparts across Europe as part of a co-ordinated action against the companies behind games including Candy Crush, Minecraft and Clash of Clans over potential breaches of consumer protection law.
All told, nine online gaming companies have been targeted in the investigation, which is focusing on in-game purchases, in-game virtual currencies, consumer rights when making purchases, transparency around costs, and the fairness of terms and conditions. It is being carried out through the European Commission’s Consumer Protection Cooperation Network. Last year the network entered talks with federations representing the global video games industry over the need for greater transparency and fairness in the use of in-game currencies.
When these talks failed to achieve satisfactory solutions for consumers, the network carried out a large-scale market check and identified several games requiring further action. The investigation is focusing on clear pricing, with the Competition and Consumer Protection Commission saying that consumers should be able to easily understand the real-world cost of in-game purchases and virtual currencies.
It is also looking at hidden costs and the use of virtual currencies or currency exchanges, which, it said, should not make prices difficult to understand. Another element of the investigation will focus on the pressure users feel to spend money. The CCPC said that consumers should not feel forced to purchase excessive amounts of in-game virtual currencies to progress or enjoy a game.
Access to clear information before making purchases and the right to cancel or withdraw from contracts within 14 days are also central to the investigation. In addition, the CCPC said that all games should include appropriate safeguards for children and other vulnerable consumers. Separately, the CPC Network is also engaging with Activision Bizzard UK Ltd , part of the Microsoft group, regarding the games Diablo Immortal and Call of Duty.
This action relates to the sale of virtual currencies, how personal data is collected, potentially addictive designs, parental controls, direct marketing to children, the availability of pre-contractual information, and the blocking of gaming accounts.
“Millions of consumers across Europe play video games, many of whom are children,” said Geoffrey Gray of the CCPC. “Consumers should be able to enjoy these games without being misled about costs, pressured into making purchases, or left unclear about their rights. This investigation is focused on ensuring consumers are given clear information, treated fairly, and properly protected when spending money in games.
” He said the CCPC would “continue to lead alongside our European consumer colleagues to make the online gaming space a safer and more transparent space for all”. Under the Consumer Protection Cooperation framework, the CCPC works with national authorities across EU member states to effectively tackle widespread infringements of EU consumer law and to review the commercial practices of traders.
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