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EU Draft Digital Fairness Act Proposes Regulation of Game Loot Boxes and Virtual Currencies

The European Commission has published a draft of the Digital Fairness Act, proposing stricter regulation of loot boxes, virtual currencies, and minor payment mechanisms in games. The bill is still in the proposal stage; its provisions are not yet in effect and may undergo further discussion and revision.

欧盟《数字公平法案》草案拟监管游戏战利品箱与虚拟货币

If the draft becomes law, all companies operating in the EU will be bound by it, not just those registered in EU member states. Governments may impose fines based on relevant regulations, and consumers who believe their rights have been infringed may seek financial compensation. The draft also addresses omissions, distortions, and "dark patterns" in advertising and public relations communications, and proposes banning personalized advertising and pricing targeted at children.

Game-related provisions require companies selling virtual currency to disclose its real-world monetary value, as well as the actual price of items purchased with virtual currency. Paid virtual currency features for minors should be disabled by default and can only be enabled with parental or guardian consent.

For paid random reward systems such as loot boxes, companies must disclose the types of items that can be obtained and their corresponding probabilities, disable these features by default for minors, and provide all users with an easily accessible option to turn them off. The draft also proposes banning pay-to-progress and pay-to-win mechanisms targeted at children.

Designs that may induce excessive use, such as autoplay, uninterrupted consumption, timed rewards, loss penalties, irrelevant notifications, and simulating interpersonal relationships to urge users, also fall within the scope of the proposed regulations. Games like Overwatch, DOTA 2, and GTA Online are cited to illustrate the potential impact of these provisions, but the relevant rules are not yet officially implemented.