BBC Investigation Reveals Widespread Non-Disclosure of Loot Boxes in Mobile Game Advertising
A recent BBC investigation has uncovered significant non-compliance among mobile game developers in disclosing the presence of loot boxes in their advertisements. Loot boxes are random in-game purchases that critics argue are exploitative and potentially addictive.
The investigation examined the top 45 highest-grossing games on the Google Play store and found that only two games actually followed the advertising guidelines set by the Advertising Standards Agency (ASA). Of the 26 games labeled as containing loot boxes, 22 were actively being advertised, but just two explicitly mentioned these random purchase mechanisms in their ads.
Loot boxes are digital items that players can obtain through gameplay or by making a payment, with the contents remaining unknown until revealed. While game developers have compared them to surprise chocolate eggs, critics argue they are a form of gambling. A 2022 Norwegian Consumer Council report concluded that loot boxes often exploit consumers through predatory mechanisms and can foster addiction.
The UK government has previously resisted regulating loot boxes, instead allowing the video game industry to self-regulate. The trade body Ukie published guidance in July 2023, requiring developers to disclose loot boxes before game purchase, with a one-year compliance period. However, the BBC found that most games are still not adhering to these guidelines.
Monopoly GO, the highest-grossing game containing loot boxes, exemplifies this issue. Downloaded over 50 million times and generating $3 billion in revenue, the game does not mention loot boxes in its advertisements.
Experts have raised serious concerns about this practice. Dr. Jane Rigbye from the Young Gamers & Gamblers Education Trust emphasized the need for transparent information to help parents and gamers make informed decisions. Adrian Hon, a game developer, criticized the industry’s track record of ignoring regulations that might impact sales.
Zoë Osmond from GambleAware expressed extreme concern about gambling-like activities becoming normalized for children. She warned that exposure to such content from a young age could increase the risk of experiencing gambling harm later in life.
Researcher Leon Y Xiao pointed out that the ASA lacks effective enforcement mechanisms, often taking too long to process complaints and having limited impact on company behavior.
The investigation highlights a significant problem in mobile gaming advertising, where crucial information about potentially addictive purchasing mechanisms is frequently hidden from potential players. This lack of transparency raises serious questions about consumer protection and the potential psychological impact, especially on younger players.
The ASA has stated that they are monitoring the sector closely and will act accordingly, but the current evidence suggests that more robust regulation may be necessary to protect consumers.
