Understanding in-game purchases

Understanding In-Game Purchases

In-game purchases, sometimes also known as microtransactions, are part of the video games landscape, but they are far from universal. Consumers continue to have plenty of choice without having to engage in any in-game spending. Annually, only 20.8% of video games rated by PEGI contain in-game purchases. The majority of players enjoy playing video games without ever making a purchase.

Based on clear existing guidance, the industry communicates with players, making sure that offers to buy in-game content are in line with consumer law and that players have all the information they need to feel confident and in control when they spend money.

The video games industry is committed to a policy framework that ensures fair and transparent player and consumer experiences in all circumstances.

PEGI continues to evolve and updates its Code of Conduct

In autumn 2023, PEGI updated its Code of Conduct to include various additional contractually bound obligations. The Code of Conduct now requires:

Information obligation: games that include in game purchases must display PEGI’s in game purchases icon at the point of purchase.
Transparency in transactions: a receipt or invoice is provided for purchases with real money.
Purchasable in-game currency: games that offer purchasable in-game currency have the real world monetary cost of such in-game currency displayed at the point of purchase.
Paid random items: Paid random items are never essential to gameplay and are optional; the Paid Random Item notice is displayed at the point of purchase; the probabilities are transparent and equivalent for all players without unfair processing of personal data.
No skin gambling: the prohibition and the enforcement of penalties on players who engage in unlawful gambling or betting activities.

Enforcement

In case of non compliance with the Code of Conduct, the PEGI Enforcement Committee can impose corrective actions and sanction breaches.

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Additional safeguards for players, with minors in focus

The video games industry work to ensure that players and consumers can make an informed choice about whether to purchase in-game content for themselves or for their children (and are transparent about) the cost of doing so. In addition to the PEGI Code of Conduct, our members provide:

Tools to manage, limit or block purchases: The industry provides tools to parents and guardians to manage children’s spending within the video game so that children do not engage in any financial transactions without the consent of their parents or guardians.
Transactions kept separate from gameplay: the commercial intent behind in-game purchases is clearly and unambiguously distinguished from gameplay so that it is obvious to players when they are being asked to make a financial decision.
Refund policies: member companies provide fair and reasonable refund policies and instructions on how to turn on and manage parental tools and family settings.
Discontinuation of in-game currency: players are informed sufficiently in advance of the discontinuation of a purchasable in-game currency.
No unauthorised trading: have policies in place that explicitly prohibit players from using in game content to engage in unauthorised trading.

Information campaigns

The video games industry has gone to great lengths to ensure that parents and guardians can choose how their children engage with games. In addition to empowered parents and guardians with tools that can help them to set rules that work for their family while respecting the best interests of their children, the industry is committed to raising awareness of these tools and making sure they are widely used through regular information campaigns such as our yearly pan-Europe Seize the Controls campaign. National trade associations further ensures campaign and resources are also shared in European national languages.

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Commitment to trusted data

Since 2018 Video Games Europe has commissioned Ipsos to conduct an annual survey on how parents monitor children’s spending. The result from the past five years (2018-2023) is consistent and the main conclusions are:

parents continue to play an active role in supervising their children’s spending (90% of parents supervise their children’s spending);
spending on in-game content has not increased above inflation;
there is a slight decrease in the proportion of children spending on in-game content (to less than 25%).