The Advertising Standards Authority (ASA) has issued an enforcement notice demanding companies disclose the presence of loot boxes in app store listings.
The notice applies to any mobile games listed on the Apple App Store and Google Play Store which contain loot boxes that can be purchased with real money, or with virtual currency that can only be obtained by spending real money.
The presence of loot boxes in games has become an increasing area of concern for regulators in recent years, with experts warning they can potentially encourage underage gambling.
The enforcement notice read: “CAP (Committee of Advertising Practice) Guidance states that the presence of random-item purchases is material to a consumer’s decision to purchase or download a game, particularly for those with specific vulnerabilities.
“The ASA has ruled that app store listings for such games must make clear whether they contain loot boxes. It has come to our attention that some mobile game publishers are failing to prominently disclose the presence of loot boxes in app store listings for their games.
“We ask that you carefully review your advertising to ensure compliance with the CAP Code, as set out in the guidance below. The guidance is not prescriptive and sets out what we consider to be best practice.”
Companies are being told to include a “prominent disclosure statement” on games, such as ‘contains loot boxes’ or ‘includes random-item purchases’.
The ASA attested that the notice should be placed somewhere that it will be seen quickly by consumers, such as at the top of an ‘about this game’ section on the listing.
An ASA statement read: “Consumers must know before purchasing or downloading a game whether it contains loot boxes.
“Do not rely on consumers scrolling through lengthy descriptions or expanding sections to find the information.
“Do not rely solely on generic labels such as ‘offers in-app purchases’, which are unlikely to make clear that purchases may include loot boxes.”
The advertising watchdog will begin actively monitoring these app store listings from 26 May onwards.
Any companies found not complying with the new regulation could be subject to targeted enforcement action.
In November, the ASA reprimanded three mobile game suppliers – Nexters Global, Kabam Games and Hutch Games – for failing to properly disclose the inclusion of loot boxes in numerous titles.
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The post ASA orders companies to disclose presence of loot boxes in app stores first appeared on EGR Intel.
Advertising watchdog issues enforcement notice to businesses promoting mobile games on the Apple App Store and Google Play Store, with checks being carried out from 26 May onwards
The post ASA orders companies to disclose presence of loot boxes in app stores first appeared on EGR Intel.