CCPC and EU consumer authorities launch joint actions into online gaming practices

The Competition and Consumer Protection Commission (CCPC), together with consumer authorities across Europe, have launched a co-ordinated action into nine online gaming companies, including the makers of Candy Crush, Minecraft and Clash of Clans, for potential breaches of consumer protection law. 

The investigation, which is being carried out through the European Commission’s Consumer Protection Cooperation (CPC) Network, is looking into in-game purchases, in-game virtual currencies, consumer rights when making purchases, transparency around costs, and the fairness of terms and conditions. 

Last year, the CPC Network entered talks with federations representing the global videogames 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 companies under investigation include: Crytek GmbH, InnoGames GmbH, King.com Operations (Malta) Limited, Mojang AB, Plarium Europe S.à.r.l., PLR Worldwide Sales Limited, Riot Games Limited, Supercell Oy, and Ubisoft EMEA SAS. 

Games owned by these companies and now under scrutiny include: Hunt: Showdown 1896, Forge of Empires, Candy Crush Saga, Minecraft, Mech Arena, Gardenscapes, Valorant, Clash of Clans, and For Honor. 

Key elements of the investigation 

• Clear pricing: Consumers should be able to easily understand the real-world cost of in-game purchases and virtual currencies 

• Hidden costs: The use of virtual currencies or currency exchanges shouldn’t make prices difficult to understand 

• Pressure to spend: Consumers should not feel forced to purchase excessive amounts of in-game virtual currencies to progress or enjoy a game 

• Clear information: Consumers should receive clear information before making purchases   

• The right to cancel or withdraw: Consumers should be informed about their rights to withdraw from contracts within 14 days, including for unused virtual currency 

• Fair terms and conditions: All terms and conditions must be fair, clear and easy to understand 

• Protection for children and vulnerable consumers: 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.  

Geoffrey Gray, Commission Member at the CCPC said:  

“Millions of consumers across Europe play video games many of which are children. 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 focussed on ensuring consumers are given clear information, treated fairly, and properly protected when spending money in games. 

“The CCPC will 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.