The UK government’s decision to force technology companies to self-regulate gambling-style loot boxes in video games has been called into question after some developers responsible for the industry’s new guidelines broke their own rules.
In the past six months, the advertising regulator has filed charges against three companies involved in developing industry rules, including major developer Electronic Arts (EA), for failing to disclose that games contained loot boxes. has supported.
The experts who lodged the complaint said they had discovered hundreds more examples of breaches, but only passed a handful to the Advertising Standards Authority (ASA) to highlight the problem.
Loot boxes are in-game features that allow players to pay with real money or virtual currency to open digital envelopes containing random prizes, such as character outfits or weapons.
Despite warnings from experts that loot boxes carry risks similar to gambling, the then-Department for Digital, Culture, Media and Sport announced in July 2022 that Loot Boxes would follow the lead of other countries such as Belgium. It was announced that it would not be regulated as a gambling product.
Nadine Dorries, then culture secretary, warned that regulating loot boxes, which research has linked to gambling-related harm, could have “unintended consequences”.
Instead, the government has established a “technical working group” that includes video game companies and technology companies; A set of 11 principles Added to lootboxes in August 2023.
These guidelines include a requirement that when a game is promoted, it must be made clear that it contains paid loot boxes.
The working group last met in June 2023. Since then, Leon Hsiao, an expert on loot box regulation and postdoctoral researcher at Copenhagen IT University, said hundreds of game ads, more than 90% of the ads he investigated, were unregulated. Please comply with the group’s own disclosure rules.
The game was available for download from the online stores of Apple and Google, members of the industry’s Loot Box Working Group. Some were promoted through social media platforms such as Facebook, Instagram, and TikTok.
The ASA upheld four complaints made by Mr Hsiao about games made by EA, Hutch and Jagex, all of which have contributed to the development of industry guidelines as members of government working groups.
The four games were F1 Clash and Rebel Racing from Hutch, Golf Clash from EA, and RuneScape from Jagex.
The EA told the ASA that the cause was “human error” and that the error was not indicative of widespread compliance with guidelines. Jagex said it didn’t have enough space to disclose the full information in its Facebook ad and disclosed it elsewhere. Hatch told the ASA that it had misunderstood the advertising guidelines and would update the ad.
But Xiao said these were not isolated incidents: “I could have filed 268 separate complaints, but my resources were limited.”
He said his research results were “that [working] This group can be trusted to achieve its intended purpose of better protecting athletes and children. ”
After newsletter promotion
“These members should be role models, not rule-breakers themselves,” he said.
Don Foster, chairman of the House of Lords’ group for Gambling Reform, said: “It is clear that self-regulation is not working and the government must intervene to properly regulate loot boxes and their marketing to protect children. It is clear that it cannot be done.”
A Department for Culture, Media and Sport spokesperson said the government was “making clear that video games companies need to do more to protect children and adults from the harm associated with loot boxes”.
They said the government would monitor the impact of the industry guidelines and “continue to consider possible future legal options”.
British gaming industry body Ukie said its members would implement new guidelines by July 2024 to “improve protection for all players and underline the industry’s commitment to safe and responsible play”. He said he wanted it.
“These principles… […] This is part of a long history of self-regulation in the video game industry and complements the strong tools and support players already have to play video games responsibly. ”
EA says: “We have a long and recognized track record of complying with loot box disclosures and quickly addressed two separate omissions caused by human error. We believe it’s important to be able to make informed decisions before downloading, and we protect players and protect them by providing them with the tools and information they need to make informed choices for safe and responsible play. We are committed to making sure everyone has access to it.”
The Guardian has contacted Jagex and Hatch for comment.
