Can Fortnite also be fined in Belgium for unfair business practices aimed at children?

The Dutch Consumer & Market Authority (ACM) has issued a sanction imposed on Epic Games International, the developer of the game Fortnite, for unfair business practices targeting underage players. 

The situation in the Netherlands

The Dutch regulator found that the game encouraged children to make purchases with direct calls such as "Buy Now. Under Dutch law, it is an aggressive commercial practice to directly urge children to buy products or to persuade adults to buy them for them. According to the ACM, this is exactly what happens with such explicit sales messages in a game aimed at a young audience.

However, the ACM has not only found problems with direct sales messages. In the Sanction Decisionst is also noted the use of timers and a rotating supply in the Item Shop, which creates a sense of urgency and scarcity. This may influence children's purchasing decisions, as they may believe that items will no longer be available after the timer expires. Indeed, the ACM found that the timers created the impression that content would disappear after 24 hours, when in reality this was not the case. After the timers expired, the offer was renewed, but some items remained available, albeit in a different place in the store.

These tactics are seen as forms of aggressive or unfair business practices. Research shows that scarcity can lead to impulsive purchasing decisions, especially among children who are prone to the fear of missing out on something (FOMO). This can result in the purchase of non-functional, unique products such as cosmetic items or dance moves in play.

It is noteworthy that the ACM's legally binding decision explicitly refers to research and literature, which is not common in such decisions.

Epic Games disagreed with the ACM's findings, claiming that the literature used was anecdotal and that some findings fell outside the investigation period. However, the ACM upheld the fines.

In any case, the ACM imposed a fine of more than a 1,125,000 euros on Epic Games International and also issued binding instructions. Epic must now specify for each item when it disappears from the store and apply a longer period than 24 hours, which the company has already changed to 48 hours. In addition, Epic is introducing "cabined accounts," which allow parents of minors to exercise effective control over their children's purchasing behavior.

What about in Belgium?

Even in Belgium, such a commercial practice can be considered unfair. Article VI.103, 5°. Code of Economic Law provides that it is an aggressive trade practice to directly induce children in advertising to buy advertised products or to persuade their parents or other adults to buy those products for them.

Following the decision of the Dutch ACM, among others, called Test-Achats the Belgian economic inspection to conduct a similar investigation. Minors in Belgium may also be victims of aggressive business practices in the online gaming world.

Conclusion

This decision by the ACM highlights the need for companies to act ethically, especially when their products are aimed at younger consumers. It sends a clear signal that protecting children in the digital economy remains a priority for regulators. Developers of online video games therefore best conform to Belgian law.

Joris Deene

Attorney-partner at Everest Attorneys

Contact

Questions? Need advice?
Contact Attorney Joris Deene.

Phone: 09/280.20.68
E-mail: joris.deene@everest-law.be

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