EU Digital Fairness Act draft targets loot boxes, virtual currency and pay-to-win

The European Commission presented its draft Digital Fairness Act on 11 November, after the text leaked earlier in the week. If adopted, it would be an EU Regulation, so it would apply directly in all member states without national transposition. It would partly override national laws on unfair commercial practices and is designed to complement the EU KIDS Act, which is still moving through the legislative process, according to GamesIndustry.biz.

Paid virtual currencies are covered by Article 14. Companies would have to display the real-money value of the currency. For products directed at minors, paid currencies would be disabled by default and could only be activated with parental or guardian approval. GamesIndustry.biz notes it is an open question whether this covers only the purchase mechanism or also the in-game functionality.

Under Article 15, paid-for variable reward systems such as loot boxes must not be offered to minors. For adults, companies would have to disclose the item types and the probability of obtaining them, and provide effective tools to disable the systems entirely. Article 16 bans pay-to-progress and pay-to-win mechanics for minors, covering purchases that are necessary, or presented as necessary, for progress or success. GamesIndustry.biz says the interpretation and legal consequences are unsettled, including whether adults could still buy items that confer competitive advantages in mixed-age games.

Other provisions include a ban on dark patterns (Article 10), defined by a blacklist whose contents are not yet known and which the Commission could expand. Article 17 would require companies to let users disable features that encourage compulsive or excessive use, such as login rewards, engagement streaks and push notifications not triggered by user activity. That list can also be extended by delegated act. Article 13 bars personalised pricing based on profiling where it is reasonably likely to harm minors or vulnerable consumers, and Article 11 sets unified transparency requirements for influencers.

For subscription-based games and services, free trials could only convert to paid contracts with express consumer agreement. Articles 23 and 24 require an online termination function and a withdrawal function, and Article 25 requires that consumers can reach a human in post-contractual online support on request.

Minors are defined as anyone under 18, and whether a product is directed at or used by minors is judged on objective indicators, with age ratings explicitly listed. GamesIndustry.biz says this means an 18+ game would face fewer restrictions than one rated for all ages, which may encourage higher ratings. It also reports that the industry feels the Commission does not sufficiently understand how games work or what PEGI and USK have already done.