You really don't get the psychology of regular kids, do you?

Many kids on Internet are like attracted like a magnet by everything "free"  (mostly games), like I said, they are easy targets. 

Of course a "regular" intelligent and experienced adult (or even most smart kids) will not be tricked by the bullshit "free" marketing.

As kids will not be tricked by the "this is not free" label.

If kids have no trouble using the credit cards of their parents they don't have trouble buying games that are not labeled as "free". Also they probably won't ban the phrase "download for free" so everyone will still be getting the games.

Xbox Live is just the service through which a game can be acquired. If they were to punish them for it, they'd have to punish pretty much everything since technically the very act of paying your internet bill puts them behind a paywall. That would be a bit silly :P

Ok. You just don't grasp the whole picture. Seen that way, you may be right BUT.

The problem we are talking is really game addiction among kids. It's a similar problem than cigarettes and alcohool addiction. You have to have laws to strictly regulate dangerous products for the public. And this kind of law is just the beginning (I hope), really.

A "free to play" game can lead to game addiction with serious financial consequences for the parents in this case (and also for the kid with his relation with money etc.), so as such is potentially dangerous for the society and must be strictly regulated.  A free to play game can be free and harmless for a kid like one cigarette or one drink of alcohool per day is perfectly harmless too, even for a kid. But it's a dangerous slope!

And I still wouldn't encourage any kid doing it because it could lead to serious addiction and others troubles.

I don't like to equate gaming addiction to smoking or alcohol. Not because it is not as severe but because it has next to no impact on other people which makes this addiction less of a target to fight against. Like chocolate addiction.

They can start fighting gaming addiction of kids(which is easily prevented by parents) when they finished banning cigarettes and alcohol in public. But they won't do that because they hav a lobby and gaming doesn't. Yet.

The EU makes such good laws.They should also ban micro transactions as well.

I live in EU.. and i wish danmark gets out becourse of them forcing us to use cemicals in producs or other stupid laws

BUT this a good thing.. Free to play is a scam.. And this is not just a label thing.. hope EU ban the model totally

And people in this tread who don't think this is any relavant.. are either not aware of how easy kids AND adults are folled by clever marketing all the time.. and how much money they make on cheap games by using this trick.. or have interests in the industry.. :)

From the wording in the opening post, it is a pretty good law. The "F2P" model is rife with fraudulent con men which gives those who are trying to be legit a bad name and a stigma. So it was a matter of time before the government started to regulate the business. Which can led to bad reprecussions in itself.

very interesting

That's the point, these games are not Free!!! It's a Pay to Win game ;)