The European Commission has adopted several measures against Star Stable Entertainment AB in order to ensure a safer and more transparent experience for users of Star Stable Online games. To this end, the Commission has been assisted by the Consumer Protection Cooperation Network (CPC Network). In addition, within the framework of this initiative, CPC has also presented the keys to help the gaming industry to comply with the European Union (EU) consumer protection rules and, in particular, the regulation on virtual currencies within the games.
Coordinated action against Star Stable Entertainment AB
Following a complaint from the Swedish Consumers' Association, the CPC Network adopted a Common Position to request Star Stable Entertainment AB to provide information on commercial practices that children might encounter in its Star Stable Online game. Having assessed the information provided, the CPC Network has identified a number of practices that violate EU consumer protection legislation and could be particularly harmful to children. These include the following:
Advertising messages directly targeting children urging them to buy or persuading adults to buy coins or game items for them.
Social engineering techniques to pressure users into making impulsive purchases of virtual currencies or content. Various manipulation techniques are used for this purpose, such as the sale of products for a “limited time”. In this way, the decisions of minors are inappropriately influenced to make in-game purchases.
Lack of information - clear, transparent and appropriately adapted for children - on the conditions of purchase and use of virtual currency within the game. This lack of information causes users to spend more than desired.
Star Stable Entertainment AB does not guarantee that the influencers promoting its products are clearly identifying that the content published on their social networks is paid for and is therefore promotional content of a commercial nature. Likewise, the company does not guarantee that influencers are not directing messages to improperly influence minors with marketing and social engineering techniques.
From now on, Star Stable Entertainment AB has a period of one month to respond in writing to the requirements of the CPC Network and submit a proposal with the commitments that the company would adopt to solve the infringements detected. At the same time, this initiative will raise awareness in society about the need for video games and the commercial practices carried out by companies to be appropriate for underage users and not to take advantage of their vulnerability.
Keys to a Trustworthy Online Gaming Environment
The CPC Network has published Guidelines to promote transparency and fairness in the use of virtual currencies in the online gaming industry. The minimum requirements for the purchase and use of virtual currencies include:
- Provide prices and pre-contractual information in a clear and transparent manner.
- Inform about the costs of digital content and services within the game.
- Buying virtual currency on a voluntary basis.
- Guarantee the right of withdrawal of consumers.
- Respect the vulnerabilities of consumers, particularly underage consumers.
These Guidelines respond to concerns raised by the European Consumers' Organization (BEUC) and will contribute to a safer and more transparent gaming experience for players. In addition, the European Commission plans to organize a workshop in which companies in the gaming sector operating in the EU will be encouraged to present the measures they will take to comply with these Guidelines. For its part, the CPC Network will be in charge of monitoring compliance with the regulations and adopting possible new measures in the event that this type of infringements continue.
Both the Guidelines and the Common Position are based on the European Directives on consumer digital content and services that apply to video games. The European Commission will continue to examine these issues during the upcoming consultations planned on the Digital Fairness Act.
Background
The European Commission helped the CPC Network - led by the Netherlands Consumer and Markets Authority and the Norwegian Consumer Authority - to adopt the Key Principles on Virtual Currencies in Gambling. Now the Swedish Consumer Agency and the Norwegian Consumer Authority - coordinated by the European Commission - are leading the coordinated action on Star Stable Online.
About the CPC Network
The CPC Network is made up of the national authorities responsible for enforcing EU consumer protection legislation. These authorities work together, under the coordination of the European Commission, to tackle widespread infringements of EU consumer law within the single market.
About the European Commission and the video game industry
The European Commission supports and contributes to raising consumers' awareness of potentially harmful video game practices. In this context, the Better Internet for Kids (BIK+) strategy was launched to improve accessibility, promote age-appropriate digital services, ensure the protection and safety of all children, and ensure that children are empowered and respected online. Similarly, during the European Year of Youth 2022, the European Consumer Centres Network developed an educational toolkit for young consumers addressing some of these issues.
Source of information: European Commission.