EU regulators file enforcement action against predatory video game currencies

Europe's Consumer Protection Cooperation Network (CPCN) has published an enforcement action with the European Commission to prevent rampant predatory monetization practices within video games, particularly with the game Star Stable Online.

The enforcement action explains that the EU views specific monetization strategies in the form of in-game currencies as designed to manipulate and deceive customers into spending more money on the game.

The notice has singled out Star Stable Online, an MMORPG/horse simulation developed by Star Stable Entertainment who is now feeling the sight of the EU regulator that is now requiring the developer to be more transparent with the cost of its in-game items, while simultaneously requesting a soft ban on in-game currency in general as there currently isn't a law in place to prevent it.

Star Stable is hardly the only company engaging in these monetization strategies; in fact, these techniques to sell in-game currency to users are used by many free-to-play titles. The EU's concerns lay within the obscuring of how much real-world money is spent on obtaining virtual currency, as the conversion between real-world money and virtual currencies isn't one-to-one, which makes it harder than necessary for consumers to realize how much money they are spending to obtain a specific amount of in-game currency.

The EU argues this is done intentionally so consumers, and particularly children are more likely to spend more than they intend.

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In the case of Star Stable Online, and many other titles, virtual currencies are sold in bundled coin packs at a "discount," making the conversion from real-life money to virtual in-game money even more difficult.

The Consumer Protection Cooperation Network's (CPC) assessment of the reply provided by the company identified a 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 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

Star Stable Entertainment AB has now one month to provide a written response addressing the issues highlighted in the CPC Network's common position and to propose commitments to remedy them.