Consumer Financial Protection Bureau’s Post

This new U.S. federal regulatory advisory follows others from federal and state enforcers looking at in-game payments in video games, from loot boxes and Fortnite skins to crypto tokens. This one involves games, but it's part of a larger focus in software generally on Dark Patterns (California in particular keeps weighing on on these design choices) and ways in which developers have users enter into Terms of Use. For devs of games or any other software that allows users to make payments, it's a full-time job keeping up with changing laws and platform rules about which disclosures to make to which users (and if your users include minors, make that two or three full-time jobs). #COPPA #DarkPatterns #privacy #gaming #CFPB #softwaredesign

📣CFPB Director Rohit Chopra recently released a report on banking issues in virtual worlds and video gaming marketplaces. The report analyzes business practices regarding gaming currencies and commerce on gaming platforms that aim to create walled-garden, virtual realities. Stay informed on the risks to consumers in this emerging market by reading the full report.⬇️⬇️ #CFPB #VirtualWorlds #VideoGaming #ConsumerProtection

The U.S. Consumer Financial Protection Bureau (CFPB) issued a report on “Banking in video games and virtual worlds.” The report focuses on the movement of money in virtual worlds and how #gamer data is collected, used, and shared. Read about the report’s findings and key takeaways: https://bit.ly/3TYByQE

As video games continue to evolve, they are becoming more than just a form of entertainment. They are now complex economies with their own marketplaces where financial and privacy risks are only too real. This is why it's great to read the summary of the Consumer Financial Protection Bureau's (CFPB) investigation of video gaming marketplaces, as it sheds light on the potential dangers of these spaces. Any parent with teenage kids knows the constant pain point that video games and their accoutrements can be, making this information all the more important. If you're interested in learning more about this topic, this summary is definitely worth a read. #privacy #videogames #consumerprotection #kids

The U.S. Consumer Financial Protection Bureau is highlighting the need of oversight for #web3gaming studios. If #gaming assets are a medium of exchange for goods and services or peer-to-peer transfers, they are comparable to banks and payment services. The CFPB labels it all as “banking in video games and virtual worlds.” Banking and payment services that facilitate the storage and exchange of valuable assets generally provide consumer protections, including recourse after unauthorized transactions. Yet operators of gaming and virtual worlds typically emphasize a “buyer beware” approach.

The Consumer Financial Protection Bureau (CFPB) has turned its attention to the gaming industry, highlighting serious concerns about payment practices. Please read the latest analysis from Hudson Cook, LLP partners Justin Hosie, Julia Whitelock, and Jason Esteves and what it could mean for the future of gaming transactions. #cfpb #gaming #paymentpractices

Here’s our latest installment of our articles on the CFPB and gaming. Check it out!

🎮 Are video games the next frontier in consumer protection? On August 28, the CFPB issued a warning about how video game companies may be targeting children for financial gain. With 45.7 million U.S. kids gaming, the Bureau is concerned that in-game purchases, virtual currencies, and "gambling-like" features could lead to hidden costs and financial risks for young players. This advisory builds on the CFPB’s April report, “Banking in Video Games and Virtual Worlds,” which highlighted how these platforms often mimic financial systems but lack the protections. With design tricks, data manipulation, and lack of transparency, the gaming industry is now in the regulatory spotlight. Check out our blog to learn how this could impact the industry and what companies should do to stay ahead of the curve! #CFPB #VideoGames #ConsumerProtection #Fintech #VirtualWorlds #InGamePurchases #DigitalFinance

Video games and virtual worlds now host complex financial systems that have spurred the CFPB to increase its scrutiny of “video game banks.” Gaming and virtual reality companies should take steps to bolster security and compliance activities. https://buff.ly/3WAxpVm