Photo of Kirk A. Soderquist

Kirk Soderquist is a partner in the Technology Transactions & Privacy practice in the Seattle office of Perkins Coie and a co-chair of the firm’s Interactive Entertainment practice.

On April 4, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new report, titled “Banking in Video Games and Virtual Worlds” (Report), that examines the growth of financial transactions in online video games and virtual worlds. The CFPB has previously signaled the expansion of its monitoring capabilities to new markets, and this Report continues that expansion to the gaming industry. 

According to the Report, the CFPB is monitoring non-traditional markets where financial products and services may be offered, including the use of virtual currencies in games and virtual worlds in response to “concerning issues regarding gaming markets,” such as financial losses (due to theft, scams, and other criminal activity), fraud and money laundering, and the collection and use of consumer data by gaming companies. The Report also notes that there may be increased risks to consumers, specifically children, within the gaming industry. Gaming companies can use the insights from the Report to review their own policies and procedures to ensure compliance with federal consumer financial protection laws.

This update summarizes the Report’s key findings, describes the risks and trends identified by the CFPB, which are likely to inform the CFPB’s market monitoring activities, and provides key takeaways for companies doing business in this space to consider going forward.Continue Reading CFPB Issues New Report Examining Financial and Privacy Risks to Consumers in Video Gaming Marketplaces: What Now?