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“There are conversations going on at the highest levels of government that we need to address as a sector,” warned Wiggin senior associate (interactive entertainment) Isabel Davies.
“The Digital Fairness Act is probably being drafted as we speak.”
As a video games lawyer specialising in interactive entertainment, with a history at Disney Interactive and King, Davies took to the stage at PGC London 2025 to discuss in-app purchases, loot boxes, hard currency and more.
In particular, she focused on the legislation around free-to-play regulations, to alert games developers to potential legal changes ahead for monetisation methods.
“Addictive” game design?
“Free-to-play regulation really kicked off in the UK and Europe in the first part of the 2010s. I think we’ve seen very little around in app purchases in the last five or so years – it’s more so been loot boxes. But now, cyclically, we’re coming back round,” Davies said.
She highlighted the Digital Fairness Fitness Check, published in October 2024, as a review of EU consumer law. Aiming to determine whether this law is fit for the digital age, this report “will tonally impact a lot of conversations around free-to-play for the next five years”.
Overall, the report suggested there is a lack of enforcement in games meaning consumers aren’t as protected as they should be online. A “lack of certainty in law” has also meant companies haven’t been incentivised to pursue “digital fairness” by design.
“Addictive” game design was also emphasised in this report, which Davies explained may have impacts on games using daily log-in bonuses or punishing a lack of play – such as a player’s base getting raided while they’re away from the game – down the line. In essence, the concern is these features get players “trapped” into playing more than they should.
“There are lawmakers out there thinking this isn’t good, this isn’t healthy,” Davies warned. “Some stakeholders have called for hard currency to be prohibited, particularly for children. There are calls to limit personalisation based on tracking of consumer behaviour.”
Davies stated that all of this is leading towards the Digital Fairness Act, likely being drafted already, so she advised developers begin to think about changes to their in-game monetisation and user retention models now, ahead of potentially forceful changes in the future.
“It will likely be another two or three years before this gets fully implemented, so developers do have some time to make any necessary changes,” she said. “It’s really important we talk about the good parts of the sector too.”
There’s still a lot more to discover from PGC London 2025, with talks and conversations ongoing throughout January 20 and 21. Check out the full schedule here.