Almost all (95 percent) of Australian gamers have been exposed to manipulative design tactics, known as “dark patterns,” that push users to spend money or give up personal data, often without fully realising it.
The finding comes from a new report by the Consumer Policy Research Centre and Monash University, which looks into an industry operating unchecked while players, including children, remain vulnerable.
Released on April 17, it claims that almost half of those affected (42 percent) never reported the harm, citing confusion about where to lodge complaints, doubts about the outcome, or believing it wasn’t worth the effort.
Among those who did act, many faced poor customer service and significant barriers, particularly when dealing with international gaming companies.
As per estimates, Australians pour more than $4 billion (US$2.5 billion) into video games each year.
Researchers are calling for urgent reforms to curb deceptive in-game mechanics such as loot boxes, battle passes, and layered virtual currencies.
Hidden Harms
While dark patterns may seem like minor annoyances, their cumulative effect on players’ wellbeing is far from trivial.In the past year alone, 59 percent of Australian gamers reported experiencing negative impacts on their wellbeing due to manipulative gaming features.
The most commonly reported emotional consequence was frustration, with 54 percent of players saying they felt annoyed during gameplay. Another 24 percent said they felt actively manipulated.
These design strategies, the report says, exploit psychological vulnerabilities to keep users engaged and spending.
Financial loss emerged as the most significant harm, with nearly half (46 percent) of players reporting they had spent more money than intended, felt pressured to make purchases, or had accidentally bought something in-game.
Among them, 30 percent spent beyond their intended limit, 27 percent felt pressured into transactions, and 19 percent made unintended purchases—often facilitated by obscure pricing structures and hard-to-find refund options.
Privacy, too, has been compromised. In the last 12 months, over half of players (52 percent) experienced some form of privacy violation.
Many games encourage or require users to share personal information while failing to make clear how that data will be used or stored.
Vulnerable Users, Inadequate Protections
The absence of legal protection is especially concerning for young users.Some of the most successful and widely played games are targeted toward children, many of whom are particularly susceptible to game mechanics like limited-time offers, reward systems, and in-game currencies that obscure real-world costs.
This vulnerability extends beyond spending and privacy. The Australian Federal Police (AFP) has warned that online games, especially those with chat functions, are increasingly being used by child predators to initiate contact with minors.
Acting Assistant Commissioner Hilda Sirec said offenders often pose as fellow gamers or friends of friends to gain trust and move conversations to other platforms where they can share images or escalate abuse.
“In some cases, an offender will suggest moving the conversation to a different app that allows sharing of images and videos,” Sirec said.
“This is typically where an offender starts engaging in sexualised chat or coercion.”
Predators may even use in-game incentives like digital currency or rare items as tools for grooming.
The Need for Stronger Regulation, Parental Vigilance
While the gaming industry continues to evolve rapidly, policy responses have failed to keep pace.The report calls on the federal government to introduce stronger consumer protections specifically tailored to digital gaming.
Suggestions include clearer refund pathways, transparent pricing, age-appropriate design, and a regulatory body empowered to investigate and respond to consumer complaints.
At the same time, a separate report by the Institute of Online Advancement offers a more nuanced perspective, suggesting that video games, when used responsibly, can foster creativity, improve memory, and support social interaction.
It says that games like Minecraft and The Legend of Zelda promote planning and innovation, while multiplayer games can build teamwork and leadership skills.
However, the risks remain real. Excessive gaming can lead to academic decline, behavioural issues, and family conflict.
Experts widely agree on the importance of parental oversight, setting time limits, monitoring game content, and encouraging balance between screen time and other activities.