CFPB Proposes Electronic Fund Transfer Act Protections for Gaming Currencies
The Consumer Financial Protection Bureau (CFPB) proposed extending the protections of the Electronic Fund Transfer Act (EFTA) to certain gaming currencies, aiming to protect players from scams and unauthorized transactions.
Key Points of the CFPB Proposal
- The proposal targets digital economies within video games, particularly platforms like Roblox.
- Players may dispute unauthorized transactions and expect timely investigations if approved.
- The protections will likely apply to games where virtual currencies can be converted to real money, excluding those like Fortnite where currencies are limited to in-game use.
Concerns Over Virtual Economies
- CFPB Director Rohit Chopra highlighted the increasing risks of fraud and theft in gaming platforms, which mirror traditional financial systems but lack adequate protections.
- A $245 million settlement with Epic Games raised concerns about consumer protection in gaming.
- The FTC previously blocked Microsoft's acquisition of Activision Blizzard due to anti-competitive violations.
The CFPB is seeking gamer input until March 31, 2025. This could lead to significant changes in how gaming companies manage virtual currency. Developers focusing on fairness may gain an advantage in the evolving regulatory landscape.