In-game purchases have become a cornerstone of the mobile video game industry, enabling developers to enhance user experience while generating revenue. However, recent developments signal heightened scrutiny from plaintiff’s lawyers, particularly regarding social casino games, which are attracting attention. Game developers should stay attuned to evolving legal risks and implement robust compliance measures to mitigate potential exposure.
Increased Legal Attention on Social Casino Games
Plaintiff's lawyers are actively seeking clients who may have purchased items in social casino games, alleging these practices could be “dark patterns.” This signals a new wave of potential litigation targeting in-game purchase mechanics, marketing strategies, and disclosures. While in-game purchases remain a widely accepted and lawful revenue model, developers should proactively address emerging risks, as these lawsuits could result in reputational harm and financial liabilities.
Considerations for Mitigating Risk
To safeguard against legal challenges, developers should assess their current practices and consider implementing the recommendations below:
Disclose That Consumers Are Purchasing Licenses
Clearly communicate to users, where appropriate, that in-game purchases confer a license to use virtual items, not ownership. Transparent disclosure helps prevent misunderstandings that may become the basis for legal disputes.
Obtain Clear and Documented Consent
Ensure users explicitly agree to purchase terms. For example, use clear and conspicuous language during the purchase flow and provide an opportunity for users to confirm their intent before completing transactions.
Design Consistency in Consent Mechanisms
Maintain consistent colors, design elements, and functionality to signal user actions. Differentiate between actions to consent versus decline to ensure users can navigate with confidence and clarity.
Avoid Creating a False Sense of Urgency
Be cautious about introducing countdown timers, limited-time offers, or other mechanisms that encourage impulse buying. Such tactics may be scrutinized as unfair or deceptive.
Substantiate Claims About Pricing or Item Features
Any claims regarding the value, pricing, or features of in-game items should be accurate and backed by evidence. False advertising claims are a frequent focus in consumer litigation.
Review Purchase Systems in Light of Recent Guidance
Collaborate with legal counsel to review the mechanics and disclosures associated with your in-game purchase systems. Even if you did so several years ago, the lens through which these mechanics are evaluated by plaintiff's lawyers today has evolved.
Conclusion
Given the growing attention paid by plaintiff’s lawyers and regulators to in-game purchases, proactively reviewing your game design, purchase mechanics, and disclosures is essential. By adopting best practices, developers can mitigate risks and ensure compliance with evolving legal standards.