European Union countries will soon start to see real-world currencies alongside virtual coin prices in video games

The US government is also urging parents to be aware of hidden expenses in their children's games.

Gamers in European Union countries will soon start to see real-world currencies alongside virtual coin prices in video games. The US government is also urging parents to be aware of hidden expenses in their children’s games.

The EU ruling comes after increasing pressure to regulate the opaque world of in-game microtransactions. The European Commission’s Consumer Protection Cooperation (CPC) has outlined new principles for game developers to follow when offering in-game purchases to gamers. They aim to prevent unfair businesses practices, such as leaving customers with unusable virtual currencies.

New microtransaction guidelines in the EU

The biggest change will be the labelling of in-game purchases with real world prices. Gamers used to paying for things with ‘points’ will now be able to see the exact equivalent in actual money, given greater transparency of the costs involved.

One of the first to feel the force of the new regulations is developer Star Stable Online, who oversee a horse-focused multiplayer game. PocketGamer reports that the company has been given a month to comply with the new directive and warned that the CPC will “monitor progress and may take further actions if harmful practices continue.”

Will gamers in the US be affected by the change?

The new regulations are only enforceable in the European Union and there is no imminent likelihood of similar rules coming to the US. But the regulations may herald the start of a new era of regulation in gaming microtransactions and the US government has already issued numerous warnings about the dangers of these payments.

A ConsumerFinance.gov help page warns that the gaming industry uses "design tricks, technology, and surveillance data to entice players into spending money." There are also few recourses when players are unsatisfied with their purchases and practically zero guidelines regulating how players can be compensated if a game is suspended or the users’ account closed.

The report adds that billions of dollars in assets, including virtual currencies, are currently held in video games and online worlds. The scale of this burgeoning market has made it a lucrative area for developers but threatens to harm trust in video games more broadly.

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