Share This Article
Video games and microtransactions are under increasing scrutiny in the European Union, as new guidelines released by the Consumer Protection Cooperation Network aim to tackle the often opaque use of virtual currencies in gaming environments which proliferated with loot boxes.
These recommendations mark a pivotal moment for the video game industry, which now faces heightened expectations around transparency, fairness, and consumer protection — especially concerning microtransactions that may exploit players’ vulnerabilities.
Why Video Games and Microtransactions Are in the Spotlight
Microtransactions — small, in-game purchases — are now a core part of most modern video games, also in relation to loot boxes, fueling monetization through the sale of skins, upgrades, loot boxes, and virtual currencies. While often involving low individual amounts, these transactions can rapidly add up, particularly when aimed at minors or other vulnerable groups. The European Commission’s newly published Guidelines on Microtransactions and Virtual Currencies in Video Games are a response to growing concerns that these systems often blur real spending and unfairly exploit player behavior.
Key Principles for Video Game Companies
The Guidelines are not legally binding, but they represent the regulatory direction of travel. They contain seven key principles that video game companies must consider when designing or reviewing their microtransaction systems:
1. Price Transparency
Digital content must display the real-world price, even when purchased with virtual currencies. Using coins, gems, or other abstract currencies must not hide the true cost. For example, if an item costs “200 gems,” the equivalent price in euros must also be shown.
2. Avoiding Obscured Costs
Games must avoid systems that make it hard to understand what a player is spending. Multiple layers of virtual currencies or confusing conversion rates (e.g., exchanging euros into tokens, then into gems) are strongly discouraged.
3. Preventing Forced Over-Spending
Offering virtual currency bundles that exceed the required amount for specific content — such as selling 500 tokens when only 450 are needed — is seen as manipulative. Players should be able to buy exact amounts and avoid being left with unusable balances.
4. Clear Pre-Contractual Information
All relevant information — including product features, withdrawal rights, and pricing — must be made available before purchases are completed, whether with real money or virtual currencies.
5. Right of Withdrawal
Players should retain the right to withdraw from unused virtual currency purchases. Any limitation on this right could be considered a violation of EU consumer law.
6. Fair and Clear Contract Terms
Agreements must avoid vague or unfair terms. Clauses that unilaterally benefit the developer, or permit changes without proper notice, are not acceptable under EU law.
7. Protecting Vulnerable Users
Special protections must be in place for minors and high-spending users (“whales”). This includes parental controls, purchase limits, and prohibitions on marketing that encourages children to buy.
What This Means for the Video Game Industry
Although the Guidelines are advisory, they interpret and apply existing EU consumer protection rules specifically to the context of video games and microtransactions. They provide both a compliance roadmap and a warning: regulators are watching, and enforcement may follow. Companies that proactively adapt their microtransaction models and ensure transparency in virtual currency use will be better positioned to avoid legal and reputational risks. This is an aspect that led to detailed investigations especially in relation to loot boxes offered by gaming providers in a non-transparent manner.
Final Thoughts
The message is clear: the era of unregulated microtransactions in video games is over. Developers and publishers must align their practices with these new expectations, or risk losing player trust and facing enforcement. The EU Guidelines serve not only as a compliance framework but also as a blueprint for more ethical game design in the digital age.
On the same topic, you can read DLA Piper’s Global Guide on Laws Applicable to Loot Boxes in Video Gaming.