Michael McGrath

The enforcement action taken by the Consumer Protection Cooperation (CPC) Network and co-ordinated by the European Commission follows a complaint to a Swedish watchdog concerning the game Star Stable Online.

Star Stable Entertainment AB was required to provide information on commercial practices that children might encounter in the game.

Based on the company’s response, the CPC Network has identified a number of practices that it believes violate EU consumer protection legislation and that could be particularly harmful to children, which it says include:

• “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”; and
• a “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.

Alongside the enforcement action, the CPC Network has published a new set of guidelines to promote transparency and fairness in the online gaming industry’s use of virtual currencies.

Michael McGrath, the European commissioner for democracy, justice, the rule of law and consumer protection, said: “Children spend a lot of time online, gaming and interacting on social media. This makes them an attractive target for traders and advertisers.

“It is crucial to ensure a safe online environment for consumers, particularly children, so they can enjoy gaming without facing unfair practices.

“I support the efforts of the CPC network and look forward to working with the gaming industry to protect consumers and children.”