The Office of Fair Trading has launched an investigation into games on phones and tablets that are free to download, but could end up costing parents hundreds - even thousands - of pounds.
It follows concerns that children could be tricked into spending money on upgrades without realising the cost.
Justin Cooke, from the British Interactive Media Association, told ITV News that the games industry did not need more regulation and that self-regulation was working.
"No doubt, there needs to be some changes to reflect the massive change going on in our industry," he said.
"Things like, for example, putting in place instant notification of payments being made through in-app."
"I think parents need to take some responsibility in the same way that I wouldn't give my kids the PIN number for my credit card," he added.
In March, a mother warned other parents about the dangers of free download games after her six-year-old daughter ran up a £900 bill on her iPad - without even needing her iTunes password.
Grace Walker from Cheshire was able to click and buy "virtual gems" to boost her performance in a My Little Pony game at £69.99 a time - running up a bill of over £900 in just 30 minutes.
Internet and mobile phone games which are free to download are being investigated by the Office of Fair Trading.
It follows concerns that children could be tricked into spending money on upgrades, Daybreak's Jonathan Swain reports.
The OFT said it is investigating a number of "free" web and app-based games with concerns over additional costs from add-on features.
In March, ITV News spoke to Danny Kitchen and his mother Sharon. Danny racked up a £1,700 bill in just a few minutes by unwittingly buying add-ons for a zombie game on his parents' iPad.
Martin Lewis, the founder of MoneySavingExpert.com, said it was "disappointing" that apps aimed at children have been allowed to charge "ridiculous amounts" for extra features. He said:
The OFT said they are concerned that children and parents are subject to "unfair pressure" to purchase, when playing on web or app based games, which can lead to "substantial costs".
"Free" web and app-based games for children are under investigation following concerns that users can run up substantial costs.
The Office of Fair Trading (OFT) are investigating whether children are being pressured to pay for content within the games such as upgraded membership and virtual currency.
The OFT has contacted companies who run the games asking for information on how they market to children.
It is also speaking to parents and consumer groups calling for information about potentially misleading or commercially aggressive practices.