A leaked draft of the European Union's Digital Fairness Act (DFA) would ban paid loot boxes and pay-to-win mechanics for minors, and switch off in-game currencies for under-18s unless a parent approves them.
The draft was first published by French outlet Contexte ahead of the European Commission's planned presentation of the proposal on November 11th, and has since been reported by Euronews, Video Games Industry Memo and several games industry outlets. The text is unofficial and could still change before the Commission publishes it.
According to the leaked draft, the DFA would replace the EU's existing Unfair Commercial Practices Directive with a regulation that applies directly in every member state. Articles 14 to 17 deal specifically with digital monetisation and addictive design.
What the draft means for games
Under Article 14, any game that sells a virtual currency would have to show the real-money value of what players buy with it. Where a game is aimed at minors, paid-for virtual currencies would be "disabled by default" and could only be switched on with a parent or guardian's approval, according to Mobilegamer.biz's reading of the text.
Article 15 says companies "shall not offer paid-for variable reward systems to minors", while Article 16 applies the same ban to "pay-to-progress and pay-to-win mechanisms". "It may be difficult for minors to resist such perceived pressure to pay," the draft reads. For adult players, games with loot boxes would have to show the probability of getting each item and offer tools to turn them off entirely. Article 17 would also require companies to let players switch off features designed to "encourage compulsive or excessive use".
The rules for minors would apply when a company is "aware with reasonable certainty" that a player is under 18. The draft suggests an age rating suitable for under-18s, such as a PEGI rating, could count as evidence that a game is aimed at minors, as could minors making up at least 25% of its audience.
Fines of up to 6% of global turnover
Beyond games, the draft would ban ten manipulative website and app designs outright, from false claims that stock is running low to pre-ticked add-ons and fake notifications, according to Euronews. Online subscriptions would also need a clear button to end the contract. The Commission could fine companies up to 6% of their global annual turnover for certain breaches.
Euronews reported that the regulation would apply 12 months after entering into force, but it must first be agreed by the European Parliament and member states. The proposal follows changes PEGI made earlier this year to how it rates games with loot boxes, which have already seen EA Sports FC move from a PEGI 3 rating to PEGI 16 because of its Ultimate Team card packs.
