The Consumer Financial Protection Bureau (CFPB) is soliciting feedback from gamers as it introduces a new regulation concerning in-game currencies and transactions that could possibly extend the current Electronic Fund Transfer Act (EFTA) and the safeguards it provides to consumers, targeting video game companies.
Historically, the EFTA has been utilized to protect consumers from unauthorized transactions and mandates financial institutions to rectify errors, investigate and address fraudulent transactions. The CFPB wants to apply some of these similar guidelines to gaming companies whose offerings resemble “consumer asset accounts,” which allow for the conversion of in-game currency or items into real money.
Under this interpretation, new regulations would apply to games like Roblox (which allows users to exchange Robux for US dollars) but would not apply to games like Fortnite, where in-game currency and items can be purchased but cannot be converted into actual cash or traded between players. It might also apply to platforms like Steam, where users can sell in-game items like weapon skins and other cosmetics for cash.
Despite this distinction, the CFPB is broadly encouraging gamers to share their experiences regarding the purchase of digital items and services within games. It is asking players to discuss their insights on issues they’ve faced while using in-game currency, the level of assistance (or lack thereof) they received when problems arose, and what protections they would like to see in place to safeguard their in-game transactions and accounts.
“Every year, Americans spend billions of dollars on video games and virtual worlds,” the CFPB states in its call for feedback and input from gamers. “A significant portion of these expenditures are for gaming currency that is stored on a player’s account and used for in-game transactions, such as purchasing goods and services and person-to-person (“P2P”) transfers. As outlined in our report on the financial risks associated with video games and virtual worlds, the mechanisms by which these gaming currencies and accounts operate are rapidly evolving.”