1. What is the CPC Network?
The CPC Network is a network of national consumer protection authorities of EU Member States. These authorities work together under the coordination of the European Commission to address widespread infringements of EU consumer laws in a coordinated manner.
2. What type of in-game virtual currencies are in-scope of the Key Principles?
- In scope: The Key Principles apply to in-game virtual currencies understood as digital representations of value that are purchased with real-world monetary value and then used by consumers to pay a price in exchange for the supply of in-game digital service or content within a video game.
The CPC Network considers in-game virtual currencies as digital representations of real-world monetary value when they serve no purpose other than, or for which other functions are secondary to providing for a method of payment, the purchase of digital content or services in video games (or, where applicable, for the purchase or another in-game virtual currency).
- Out of scope: Cryptocurrencies or similar digital currencies that constitute an alternative form of payment using encryption algorithms are expressly out of scope, as are virtual currencies in the concrete sense defined in Directive (EU) 2018/843.
Furthermore, in-game virtual currencies that can solely be obtained through gameplay and that are therefore not available to purchase with real-world money, are excluded.
3. What are the Key Principles for in-game virtual currency?
Based upon the CPC Network’s interpretation of EU consumer protection laws, including: (i) the EU Unfair Commercial Practices Directive 2005/29/EC (“UCPD”); (ii) the EU Consumer Rights Directive 2011/83/EU (“CRD”); and (iii) the EU Unfair Terms Directive 93/13/EEC (“UTD”), the CPC Network issued seven Key Principles. These are summarized below:
- Principle 1: Price indication should be clear and transparent. The price of in-game digital content or services must be provided to consumers in real-world money in a clear and comprehensible manner to allow them to make an informed purchasing decision. When players can buy in-game digital content or services with in-game virtual currency, the price should also be indicated in real-world money to objectively reflect the real-world monetary cost.
- Principle 2: Practices obscuring the cost of in-game digital content and services should be avoided. Traders should not mislead consumers by obscuring the price of in-game digital content or services they offer. Using several different types of in-game virtual currencies within the same video game, as well as requiring several exchanges of in-game virtual currencies should be avoided.
- Principle 3: Practices that force consumers to purchase unwanted in-game virtual currency should be avoided. Traders should not design video games in ways that force the consumers to spend more real-world money on in-game currency than they need to buy the selected in-game content or services.
- Principle 4: Consumers should be provided with clear and comprehensible pre-contractual information. Traders should follow their legal obligations to provide clear and comprehensible pre-contractual information as soon as they offer the purchase of in-game virtual currencies, in-game digital content or services.
- Principle 5: Consumers’ right of withdrawal should be respected. Traders should inform consumers of the steps for exercising their right of withdrawal and, where applicable, allow them to exercise that right within 14 days of the purchase.
- Principle 6: Contractual terms should be fair and written in plain and clear language. The terms and conditions of the video game and any contractual terms related to the purchase of in-game virtual currency, or the purchase of digital content or services with in-game virtual currency, should be written in plain and clear language.
- Principle 7: Game design and gameplay should be respectful of different consumer vulnerabilities. As vulnerable consumer demographics, such as children, are often influenced unfairly, traders should reduce this risk. This can be achieved by parental controls and consumer-friendly default settings.
4. What are the key issues and criticisms of the Key Principles?
The Key Principles have faced significant criticism from the games industry. In a joint statement dated 22 March 2025, the European Game Developers Federation and Video Games Europe expressed disappointment over the lack of engagement from the CPC Network in creating these principles. The industry has argued that the Key Principles introduce new legal theories and misguided interpretations of EU consumer law, causing confusion and disruption for consumers and potentially hindering industry growth.
One key issue is the CPC Network’s questionable assumption that in-game virtual currencies are “digital representations of value” and not “digital content.” This relies on Recital 23 of the EU Digital Content and Digital Services Directive (EU) 2019/770, which states that electronic vouchers or e-coupons used by consumers to pay for different goods or services, such as balances on e-wallets offered by game distribution platforms, would not themselves qualify as digital content, but rather be “digital representations of value”. However, Recital 23 expressly states that virtual currencies would qualify as “digital representations of value” (only) to the extent that such virtual currencies are recognized by national law. In-game virtual currencies that cannot be used for different goods or services but are limited in scope to expand the action or gameplay within the relevant game would likely not be recognized as virtual currency by national law. Therefore, we take the view that there are reasonable arguments to conclude that such in-game virtual currencies should be considered as “digital content” within the meaning of the EU Digital Content and Digital Services Directive (EU) 2019/770.
There are also several practical implications of the Key Principles, such as displaying in-game virtual currency alongside its real-world equivalent, which may require significant game redesign and may mislead consumers into thinking these currencies have real-world value, which some national laws may not recognize, particularly in closed-loop systems where digital content cannot be withdrawn or traded for money or money’s worth. Additionally, requiring the display of real-world value may force developers to disclose sensitive pricing information, raising competition law concerns, being a concern previously voiced by the industry.
The CPC Network also suggests that players cannot waive their withdrawal right when purchasing in-game virtual currencies but, to the extent players have used the currency during the withdrawal period, the right of withdrawal would no longer exist. This introduces complexity, as the correct classification of in-game virtual currency as “digital representation of value” or “digital content” significantly impacts the legal requirements game companies must comply with, including withdrawal rights and price transparency.
5. Are the Key Principles legally binding upon video game companies?
The Key Principles are non-binding recommendations and cannot impose additional obligations beyond existing EU consumer protection laws, such as the UCPD, the CRD, and the UTD.
The CPC Network emphasizes that following the Key Principles does not guarantee legal compliance, nor does ignoring them automatically constitute unlawful behaviour. The Key Principles are intended to reflect the expectations of consumer protection authorities and indicate how they will approach practices related to in-game virtual currencies in the future. Only competent authorities and courts can ultimately decide on the legality of commercial practices.
6. What are the sanctions in case of non-compliance?
Enforcement Action. EU/EEA consumer protection authorities may enforce EU consumer law requirements (which form the legal basis for the Key Principles) through coordinated enforcement actions under the EU CPC Regulation 2017/2394 if breaches occur in multiple Member States simultaneously.
Administrative Fines. Non-compliance can result in administrative fines of up to 4% of the targeted companies’ annual turnover in the affected Member States.
National Enforcement Mechanisms. Various enforcement mechanisms under national laws include administrative proceedings, administrative fines, and collective actions by registered consumer protection associations.
7. What should video game companies do now?
Review for Consistency. Review games for consistency with the Key Principles.
Case-by-Case Assessment. If inconsistencies are found, assess on a case-by-case basis whether changes are necessary or if there are defensible reasons not to make changes.
Consider Unique Circumstances. Consider unique circumstances of the game and scrutinise the appropriate legal interpretation, which may differ from the CPC Network’s interpretation.
Risk Assessment. Conduct individual risk assessments to determine exposure.
Remediation Actions. Consider the extent to which any remediation actions are needed while industry-wide discussions with the CPC Network continue.
8. What’s next?
According to its press release on 21 March 2025, the European Commission will host a workshop encouraging gaming companies operating in the EU to present concrete steps for implementing the Key Principles.
The European Game Developers Federation and Video Games Europe have announced plans to engage further with the CPC Network to ensure the best experience for players.
Additionally, the European Commission will examine these topics during forthcoming consultations on the Digital Fairness Act.
In-depth 2025-097
