European Commission sets new guidelines for virtual currency inside video games

Microtransaction has been a hot topic in video games, it’s one thing to purchase cosmetics using real-world currency. However, things can get confusing when there are multiple currency conversions. Now the European Commission and the Consumer Protection Cooperation (CPC) Network have decided to end it, at least in Europe.

This comes following an investigation of Star Stable Online, the CPC Network noted that the game was engaging in business practices deemed ‘harmful to children’. Nowadays games contain vague exchange rates, proper information, FOMO tricks, and make people purchase more than they need. Following this, a new set of guidelines is now put forward to have transparent pricing for online transactions.

Here are the seven key principles laid by the European Commission and CPC Network

• Price indication should be clear and transparent
• Practices obscuring the cost of in-game digital content and services should be avoided
• Practices that force consumers to purchase unwanted in-game virtual currency should be avoided
• Consumers should be provided with clear and comprehensible pre-contractual information
• Consumers’ right of withdrawal should be respected
• Contractual terms should be fair and written in plain and clear language
• Game design and gameplay should be respectful of different consumer vulnerabilities

There is a lot to explore in each key point as they cover every small thing that the statement can cover, however, the ultimate goal here is to make these online or in-game transactions as clear as possible, especially for children and those who are new to online gaming. Gacha games like Genshin Impact are a prime example but recently western developers have also started adopting similar things.

Also Read:Closed alpha for EA Skate adds microtransactions and community have mixed feelings

Long-running fight to make microtransactions fair

Most recently, the Genshin Impact publisher ‘Cognosphere’ was hit with a $20 million fine by FTC for deceiving players. Following an investigation it was noted that the game confuses players with multiple currency exchanges.

This isn’t the first time a topic regarding microtransactions or in-game currency has come to light. Many large corporations like Electronic Arts, Ubisoft, Activision, Epic Games, and others have also come under the EU’s and FTC’s radar regarding their in-game shop and practices that resembled a form of gaming.