UK Mobile Games Found Violating Loot Box Disclosure Rules

A new BBC study shows many popular mobile games in the UK do not inform players about loot boxes in their ads. This lack of honesty has raised concerns about keeping customers safe as people often compare these kinds of games to gambling and say they target those who are prone to addiction.

UK’s Loot Box Ad Guidelines Largely Ignored, Sparking Concerns Over Transparency

The UK Advertising Standards Authority (ASA) has issued guidelines to game makers that oblige them to mention loot boxes in ads. However, only two out of the 45 top-earning mobile games on Google Play follow this rule. This rule-breaking has made experts and watchdog groups upset. They say the fuzzy rules make the problem worse.

Dr. Jane Rigbye, who runs the Young Gamers and Gamblers Education Trust (Ygam), stressed how crucial it is for gaming companies to be open to keep young players safe, reported BBC News. At the same time, people from the ASA said they keep a close eye on the gaming world, but some think the ASA does not have enough power to enforce rules.

Game makers say loot boxes are like buying a surprise toy, but others think the random prizes can make people addicted. A report from Norway’s Consumer Council in 2022 called loot boxes unfair and said they could cause financial problems. Even with more proof, the UK government has not introduced stricter rules. Instead, it is asking the gaming industry to make its own rules.

90% of Games Fail to Warn Players About Financial Risks

In 2023, the trade organization Ukie put out rules saying games must tell players about loot boxes before they buy. However, over a year later few companies are following these rules. Studies show most games mention loot boxes in hard-to-find information sections so many players do not know about the financial risks.

Game maker Adrian Hon slammed the industry for not taking responsibility. He said loot boxes get people hooked and cause harm. Hon pointed out that just telling players loot boxes are in a game should be the least companies do, but many care more about making money than protecting customers.

Leon Y. Xiao, a researcher, pointed out that regulators take their time to enforce rules. He noticed that game makers often ignore warnings from the ASA.

His research backs up what the BBC found out: almost 90% of games with loot boxes do not inform people about them in ads.

Loot boxes bring in about $15 billion each year, and we see more and more of them. But groups like GambleAware worry that when kids see things that look like gambling, it might make risky choices seem normal. This could lead to gambling problems when they grow up.