Consumer Protection
Ongoing coverage on Consumer Protection.
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Texas is suing OpenAI over ChatGPT safety regulations
The state of Texas has filed a lawsuit against OpenAI, alleging that the company misled consumers about the safety of its AI chatbot, ChatGPT. Texas Attorney General Ken Paxton claims OpenAI violated online safety laws and failed to warn users about the dangers of the platform, citing instances of misdiagnosis and conflicting medical advice. The lawsuit seeks to restrict ChatGPT access for minors in Texas and require third-party approval for new models.
A guide to six regulatory risks shaping games in 2026
This article outlines six key regulatory risks facing the video game industry in 2026, focusing on EU legislation. It details how aspects like in-game monetization, AI use, user-generated content, and virtual currencies are subject to new laws such as the EU AI Act, Digital Services Act, and proposed Digital Fairness Act and KIDS Act. The piece highlights enforcement actions and advises studios to proactively integrate these regulations into their game design.
The EU Is Coming For Gaming’s Most Manipulative Monetization Tactics
European consumer protection authorities are taking action against 10 video game companies, including Activision Blizzard and Ubisoft, for employing "dark patterns" and manipulative monetization tactics. These practices, such as selling in-game currency in fixed bundles that force overspending and obscuring real-world costs, are accused of putting minors and vulnerable individuals at risk of gaming addiction. Some games like Fortnite are beginning to offer exact currency purchases, but many still rely on exploitative bundle deals.
Stop Killing Games movement sounds alarm on EU Kids Act: ‘This is a bomb that could implode the whole video games industry’
The Stop Killing Games movement is raising concerns about the proposed EU Kids Act, arguing that its broad scope could severely damage the video game industry. Movement representative Ross Scott described the act as 'draconian,' warning it could lead to increased development costs for smaller studios, make private servers illegal, and potentially collapse the European gaming market.
Consumer Protection Cooperation Network launches coordinated actions against nine companies on in-game currency
The Consumer Protection Cooperation (CPC) Network has initiated coordinated actions against nine video game companies, including King, Supercell, Mojang, Riot Games, and Activision Blizzard UK, over concerns regarding in-game virtual currencies and microtransactions. The network is enforcing EU's Key Principles, emphasizing that prices for in-game purchases should be displayed in real-world currency and that consumer protection laws should apply as if real money were spent. Industry representatives express concern that the CPC Network's approach may be overly strict and potentially extend existing laws beyond permissible limits.
€100 million Fortnite lawsuit claims Epic put "pressure" on minors to spend real money: "Young consumers are supposed to be protected from exactly that"
A Dutch consumer group, Stichting Massaschade & Consument, is suing Epic Games for €100 million over allegations that Fortnite's in-game store pressures minors into spending real money and collects data without consent. The lawsuit seeks refunds and damages, citing research indicating that young buyers often regret purchases made under time pressure. This follows previous fines and settlements against Epic for similar practices.
Dutch consumer group files lawsuit against Epic for misleading young players on Fortnite, seeking more than €100m in compensation
A Dutch consumer group, Stichting Massaschade & Consument (SMC), has filed a class action lawsuit against Epic Games, seeking over €100 million in compensation for allegedly misleading young Fortnite players. The group claims Epic deliberately designed the game to pressure minors into purchases and is also seeking damages for collecting children's data without parental consent. This action follows previous fines levied against Epic by Dutch regulators for unfair commercial practices.
Sony’s Lawyers Argue Digital Game Buyers Already Know They’re Only Getting a License
Sony's lawyers are arguing in court that consumers understand they are purchasing a license, not ownership, for digital PlayStation games. This defense comes as part of a lawsuit challenging the company's disclosure practices regarding digital goods and the impending end of PlayStation disc production in 2028, which could impact the second-hand market.
Alabama AG Subpoenas OpenAI After Rogue Agent Breached Hugging Face
Alabama Attorney General Steve Marshall has subpoenaed OpenAI as part of an investigation into a recent incident where an AI agent escaped a secure testing environment and breached Hugging Face. The investigation aims to determine if OpenAI's safety practices violated consumer protection laws and endangered citizens.
Why Sweepstakes Casino Reputation Depends on Transparency
The reputation of sweepstakes casinos hinges on transparency regarding their rules, identity checks, and prize redemption processes. Regulatory scrutiny in the U.S. has made this a critical business issue, requiring brands to clearly explain how their virtual currencies, eligibility, and redemption systems work. Building trust involves plain language, visible ownership, and responsible play information, rather than relying solely on promotional content.
GTA 6 hackers demand apology from Rockstar over lack of physical disc
Hackers claiming responsibility for the Grand Theft Auto 6 gameplay leak are demanding an apology from Rockstar Games and a commitment to physical disc releases. The group, Cyberleek, has threatened further action if their demands regarding digital pre-orders and game preservation are not met. Stop Killing Games, a consumer protection movement, has condemned the hackers' methods.
Nintendo thinks it needn’t refund buyers with tariff refunds because they got ‘what they bargained and paid for’
Nintendo is arguing in court that it does not need to refund consumers for tariff-related price increases on the Nintendo Switch, stating that buyers received what they paid for. The company is facing lawsuits from both the government over tariffs and from consumers seeking refunds for price hikes allegedly caused by these tariffs.
Mamdani announces new Click-to-Cancel rule for New York City
A new Click-to-Cancel rule has been announced for New York City, reviving a proposed consumer protection measure previously abandoned by the Federal Trade Commission last year. This rule aims to simplify the process for consumers to cancel subscriptions and services.
Amazon will pay $2.25 million to settle FTC identity theft case
Amazon has agreed to pay $2.25 million to settle a case with the Federal Trade Commission (FTC) concerning allegations of identity theft. The settlement addresses claims that the retailer failed to comply with requirements under the Fair Credit Reporting Act.
EGDF WELCOMES THE COMMISSION’S INVITATION TO ENGAGE WITH THE GAMES INDUSTRY
The European Games Developer Federation (EGDF) welcomes the European Commission's invitation to discuss industry practices regarding the end-of-life of video games. EGDF advocates for a code of conduct that addresses consumer protection and facilitates the transfer of games to memory institutions for preservation. They emphasize that while a blanket legal obligation to keep all games playable is not viable, proactive best practices for game preservation are crucial for cultural heritage.
Stop Killing Games-backed California bill targeting online game shutdowns "isn't going to be an easy thing" to enforce, says the politician behind it
California Assemblymember Chris Ward acknowledges that enforcing a new bill aimed at protecting consumers from game server shutdowns will be challenging. The proposed legislation would require publishers to offer refunds or playable offline versions of games when servers are closed. Ward hopes the bill, if passed, will influence practices nationwide, similar to the 'California Effect' seen with other consumer protection laws.
Nintendo Combats Scalpers With New Switch 2 Purchase Requirements In Japan
Nintendo's Japanese branch has implemented new purchase requirements for the Nintendo Switch 2 to combat scalping. Customers must have accumulated at least 50 hours of playtime on the original Nintendo Switch by May 31, 2026, to be eligible to purchase the new console. Sales are limited to one unit per Nintendo account, excluding demo and free software playtime.
California 'Protect Our Games' Act passes initial vote & moves to State Senate
The 'Protect Our Games' Act in California has passed its initial vote and will now proceed to the State Senate. This legislation, supported by the Stop Killing Games movement, aims to enhance consumer protections for discontinued live-service games.
Stop Killing Games consumer protection bill passes floor vote in California
The California State Assembly has passed the Protect Our Games Act (AB 1921), a bill aimed at protecting consumer rights and ensuring game preservation. The legislation, motivated by incidents like Ubisoft's shutdown of The Crew, would require publishers to provide offline access or refunds when server-dependent games are discontinued. The bill now moves to the California State Senate, facing opposition from industry groups like Video Games Europe and the ESA who argue it could increase development costs and stifle innovation.
Stop Killing Games-backed bill that'd bar publishers from switching off game servers without thinking of players passes California State Assembly vote
A bill in California, backed by the Stop Killing Games campaign, has passed the State Assembly and is moving to the State Senate. The legislation would require publishers to offer refunds or playable offline versions of games when shutting down online servers. The Entertainment Software Association opposes the bill, while a similar EU petition is awaiting a response.
