Majority of mobile games fail to disclose loot boxes in advertising

In the United Kingdom, a recent investigation by the BBC revealed that most of the top mobile games are being advertised without proper disclosure of loot boxes, which are in-game purchases that critics argue are exploitative and addictive. The Advertising Standards Agency (ASA), tasked with regulating such advertisements, has established guidelines indicating that games should clearly disclose the existence of loot boxes prior to purchase. However, of the top 45 highest-grossing games on the Google Play store, only two complied with these regulations. This situation raises significant concerns about the lack of transparency in the gaming industry, particularly regarding how it could affect vulnerable players, including children. Dr. Jane Rigbye, the chief executive of Young Gamers & Gamblers Education Trust (Ygam), expressed her concerns about the findings. She emphasized the importance of providing clear and unambiguous information about in-game features like loot boxes, which can often lead to overspending. The findings indicate that while 26 out of the 45 games were labeled as containing loot boxes, only two actually labeled these features in their advertisements. This disparity suggests an ongoing issue of compliance within the industry, as many developers appear to be neglecting their responsibilities to inform potential players. Furthermore, Leon Y Xiao, a researcher from the IT University of Copenhagen, highlighted the slow compliance process of the ASA, indicating that even when complaints are upheld, it takes considerable time to ensure adherence. This delay may leave players unaware of the potential financial risks associated with loot boxes, reminiscent of gambling practices. The issue has raised questions about the morality of game developers who might prioritize profits over player welfare, especially given that loot boxes are often designed to be habit-forming, making it easy for players, particularly minors, to overspend. Industry guidelines established by Ukie in July 2023 called for disclosures about loot boxes to be made before purchases. However, despite this framework, there has been minimal implementation by leading game companies. The findings of the BBC investigation underscore the persistent challenge of ensuring consumer protection within the gaming industry, especially in light of mounting evidence that children frequently encounter a blend of gaming and gambling content in their online environments. As the gaming landscape evolves, the need for effective regulations and compliance measures becomes increasingly critical, with the sector under scrutiny for its responsibility toward its players.