Lex Blog
On March 21, 2025, the European Commission announced that the Consumer Protection Cooperation Network (“CPC-N”) had initiated enforcement proceedings against an online gaming company, for allegedly violating EU consumer protection laws and engaging in practices that could pose a particular risk to children. The gaming company now has one month to propose commitments to remedy the consumer law violations identified by the CPC-N. Concurrently, the CPC-N published guidelines to promote transparency and fairness in the online gaming industry’s use of virtual currencies.
Last year, the European Consumer Organization (“BEUC”) and 22 member organizations from 17 countries filed a complaint with EU consumer protection authorities citing certain alleged unfair practices of several gaming companies. The complaint specifically mentioned issues such as the lack of transparency over the use of virtual currencies and “manipulative tactics” affecting children. As a result, the CPC-N seems to have turned its attention to the gaming industry.
The CPC-N’s focus on child protection in the gaming industry seems timed to coincide with other EU initiatives. According to EU Commissioner Michael McGrath, who is in charge of the EU’s upcoming Digital Fairness Act, this law will “look at video games in particular in relation to young people” (as stated at an event in Dublin on March 4). The Commission is expected to publish a first draft of the Digital Fairness Act this year.
In addition to the Digital Fairness Act, the Commission will also publish the next Consumer Agenda 2025-2030 in the last quarter of 2025, setting out its action plan to ensure consumer protection over the next five years. In preparation for the publication of its agenda, the Commission earlier this month published the results of a comprehensive survey that it conducted in all EU Member States to assess consumers’ attitudes, behaviors and experiences in relation to domestic and cross-border trade and other related issues. Key issues of concern include consumer confidence and knowledge; online shopping; product safety; environmental aspects and repairability, problems and complaints; and unfair and illegal commercial practices.
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Covington & Burling regularly advises companies on all aspects of EU consumer protection law, as well as intersections with privacy, cybersecurity, and product safety laws. We are happy to assist you with any inquiries related to compliance with EU consumer protection law.
