Video Games: Consumer Law Debate
Full Debate: Read Full DebateJoe Robertson
Main Page: Joe Robertson (Conservative - Isle of Wight East)Department Debates - View all Joe Robertson's debates with the Department for Digital, Culture, Media & Sport
(1 day, 17 hours ago)
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Joe Robertson (Isle of Wight East) (Con)
It is a pleasure to serve under your chairmanship, Mr Mundell. I am grateful to the Members who have spoken passionately about this issue, in particular the hon. Member for South Norfolk (Ben Goldsborough), who led the debate, and to the people who signed the petition.
Video games are a significant part of the entertainment and creative industries and give pleasure to millions. As we have heard, they have a cultural relevance today that was perhaps not seen in previous generations. The lazy stereotype of a sector dominated by teenagers is far from reality: research has found that one in six adults in the UK regularly plays video games. If we include under-18s, there are currently 40 million gamers across the UK. Franchises such as “Call of Duty”, “FIFA” and “Assassin’s Creed” attract millions of players and have production values and graphics that earlier generations of gamers could barely dream of.
The UK can be proud of its video games industry, which is the largest in Europe. “Grand Theft Auto” and “Tomb Raider” are just two of the most significant examples to come out of the UK games creative industry. Some estimates suggest that the UK games market could reach £8 billion by 2027, which would be more than the UK film industry today.
That is why the previous Conservative Government took measures to support the video games industry and created the £13.4 million UK games fund, which supported the acceleration of growth in the UK games sector between 2022 and 2025. An independent 2025 review of the UK games fund estimated that overall,
“the current three-year iteration of the UKGF will generate in the range of £30m to £58m in productivity benefits for the UK economy due to salary uplifts for supported video game developers.”
The previous Government also set up the right economic environment to create the conditions for growth, including the announcement in the spring 2023 Budget that video games expenditure credit would be introduced from 1 January last year. VGEC is calculated directly from qualifying expenditure and has a credit rate of 34%, which provides a greater benefit than the earlier video games tax relief.
Turning to the issue raised by the petition, the Stop Killing Games campaign did a tremendous job of raising awareness of video games publishers disabling, discontinuing or removing access to parts, or in some cases the entirety, of their games. Some Members in this Chamber have a favourite video game, some of which we have heard about, and they in particular will understand just how frustrating and disappointing it would be not to be able to play that game again. In a perfect world, everyone would have access to their favourite games forever, but this is not a perfect world.
We need to strike a balance between consumer interests and the burdens on some video games producers. We need to tread carefully, and in particular avoid introducing changes that would increase the cost to successful video games companies of supporting older games with a declining number of players. That money might otherwise be spent on developing newer, better games. However, we have heard anecdotal evidence today of games being withdrawn without obvious reason, despite seeming to generate considerable profits and have a considerable number of consumers.
Tom Gordon
In my speech, I talked about the recent buy-out of EA. Part of the investment by the consortium is taking on large amounts of debt. Profitable games such as “FIFA” and other titles will now have to find money to service that debt. Does the hon. Gentleman share my concern that equity companies and capital buying up games might hinder the market?
Joe Robertson
The hon. Member makes a perfectly valid point with which I sympathise. It is certainly true that there are a number of different games providers and some are backed by large amounts of money and debt. We have to distinguish clearly between the variety of games providers out there; I will go on to say something about the smaller providers, but the principles that underlie this issue seem clear.
It is incumbent on games companies to make it absolutely clear to consumers when there is the possibility that their games may become unplayable after a period of years. I hope that the video games industry will be happy to accept that responsibility by using clear consumer messaging; I would certainly expect the two industry trade associations to ensure that that happens as a matter of course. As I noted, however, we must also bear in mind the cost to video game publishers of continuing the software; this could become an unfair burden, especially on games producers that are comparatively small, independent businesses, which are all already facing increased costs. Will the Minister take this opportunity to reassure the industry generally that she is battling for the interests of the creative industries as a consideration in the forthcoming Budget that the Chancellor is in the process of writing?
The Government also have responsibility for evaluating whether the protections in place for consumers are both effective and sufficient—we cannot simply assume that they are. Consumers are predominantly protected by the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008. The CRA ensures that if software on sale is not supported by the provider, that should be made clear—on product webpages and on physical packaging and labelling, for example. Does the Minister believe that existing labelling and consumer information are sufficient? As I said, we cannot simply assume that because the law and regulations exist.
We have had recent experiences in other fields—Oasis tickets and Ticketmaster, for example—where the Competition and Markets Authority found that consumers were not given sufficient information. If the number of games being disabled or deactivated is increasing, perhaps it is time to consider whether the existing information is suitable. If digital content does not meet the CRA’s quality rights, the consumer is entitled to a repair or replacement or, if that is not possible, money back up to 100% of the cost of the digital content. Those rights apply to intangible digital content, such as a PC game, as well as tangible content, such as a physical copy of the game. Has the Minister made an assessment of how successful consumers are at seeking redress from video publishers?
Consumer protection rights, which the last Government put into primary legislation, prohibit commercial practices that omit or hide information that the average consumer needs to make an informed choice, and prohibits traders from providing material in an unclear, unintelligible, ambiguous or untimely manner. As with the CRA right to redress, does the Minister believe that the existing route—via Citizens Advice, trading standards, and, where appropriate, the CMA—is an appropriate avenue for consumers? Can the Minister update us on how many consumers have achieved compensation via those routes?
The Government have already confirmed that they have
“no plans to amend existing consumer law on disabling video games.”
That may be a proportionate approach on the basis of what we currently know. However, the Digital Markets, Competition and Consumers Act 2024 will give Ministers the power to add, amend or remove a description of a commercial practice that is, in all circumstances, considered unfair. Will the Minister be willing to use those powers in the case of video games, if the evidence suggests that the industry’s commercial practices fall short? Will the Minister confirm that the Government will ensure that the disabling of games is monitored to determine whether it is increasing? Can she confirm that the CMA will look at the existing information requirements for consumers to identify whether it is adequate?
All said, the previous Government recognised the importance of the sector. I hope the Minister ensures that, while she considers whether more can be done to address this issue, any new measures do not stifle growth. Consumers must be protected, but we have a great UK video games sector. The Opposition want to see it go from strength to strength.