EU Commission presents Digital Fairness Act: pay-to-win for minors to be banned

On 11 November, the EU Commission presented its proposal for a Digital Fairness Act, a major update of consumer protection for the internet. Several points directly affect video games. It is still a proposal: the European Parliament and Council will now discuss it.

What matters for games

• Clear prices for in-game currencies: purchases made with virtual currencies in apps and games are to be priced clearly and transparently.
• Addictive features can be turned off: users should be able to switch off design elements that encourage excessive spending, such as persistent prompts.
• No pay-to-win for minors: gambling-like features such as pay-to-win and pay-to-progress are to be banned for minors.
• No dark patterns: manipulative tactics such as fake “almost sold out” claims are to be banned.
• Subscriptions: contracts are to be easier to cancel, and free trials should no longer turn into unwanted subscriptions.

According to Nintendo Life, the legal text also requires loot boxes to disclose contents and odds, and bans loot boxes in games for minors. We have not checked this in the proposal text ourselves.

Enforcement

The Commission is to be able to investigate large cross-border cases itself, with fines of up to 6% of global annual turnover. Companies outside the EU will have to appoint a legal representative in the EU. According to the Commission, EU consumers are expected to save up to €13.7 billion a year overall.