In recent days, gaming companies have received crucial advice on how to safeguard children from harmful commercial practices in online gaming. The Consumer Protection Cooperation (CPC) Network, which enforces EU consumer protection laws, has published guidelines aimed at ensuring transparency and fairness in the use of virtual currencies in games. This Network works EU-wide to ensure consumer protection laws are enforced across member states. It consists of national authorities responsible for enforcing consumer rights and is coordinated by the European Commission. Its key responsibilities lie on:
Cross-border Enforcement – The CPC helps authorities collaborate on cases where consumer protection laws are violated across different EU countries.
Investigations & Actions – National consumer authorities can investigate businesses, request information, conduct inspections, and take legal action to stop unfair practices.
Coordinated Actions (Sweeps) – The CPC organizes annual “sweeps” (EU-wide investigations) to check compliance in areas like e-commerce, travel, or social media.
Warning & Sanctions – If a company is found breaching EU consumer laws, the network can demand corrective actions, impose fines, or remove illegal content.
Cooperation with the European Commission – The Commission ensures proper implementation of EU consumer protection laws and assists in coordinating enforcement.
The guidelines, developed in response to concerns raised by the European Consumer Organisation (BEUC), who represents consumer groups across Europe, advocating for stronger consumer rights, fair markets, and better EU policies on issues like digital services, food safety, financial services, and sustainability, working to influence legislation and hold businesses accountable for harmful practices, establish key principles for purchasing and using virtual currencies. These include:
Clear and transparent pricing, along with accessible pre-contractual information.
Avoiding hidden costs and preventing manipulative practices that pressure consumers into purchasing virtual currency.
Respecting consumer rights, including the right to cancel purchases.
Protecting vulnerable consumers, especially children.
In this sense, the CPC Network will monitor compliance and may take further action if companies fail to address harmful practices. The European Commission will also examine these issues as part of the upcoming Digital Fairness Act.
Alongside these guidelines, the CPC Network has taken enforcement action against Star Stable Entertainment AB, following a complaint from the Swedish Consumers’ Association. After reviewing the company’s commercial practices in Star Stable Online, regulators found multiple violations of EU consumer protection laws, including:
Directly appealing to children in advertisements, encouraging them to buy virtual currency or persuade adults to buy for them.
Using pressure tactics like time-limited purchases to manipulate children into spending more.
Failing to provide clear, child-friendly information about in-game purchases, leading to unintended spending.
Not ensuring that influencers promoting the game disclose paid advertisements and avoid unduly influencing children.
Star Stable Entertainment AB has been given one month to respond and propose solutions to address these concerns. BEUC has welcomed this action, emphasizing the importance of making gaming environments safer for children.
The CPC Network continues to stress that gaming companies must adapt their commercial practices to better protect young players. This latest initiative signals a stronger stance on consumer rights, ensuring that children can enjoy gaming without being unfairly targeted by manipulative marketing strategies.