EU Report Says Loot Boxes Should Be Consumer Protections Issue Instead of Gambling Issue
The topic of microtransactions and Loot Boxes have been a hot issue for debate ever since the first sets of DLC released, from fun new missions and expansions to Elder Scrolls' controversial horse armor. Even more debated about the ethics of this kind of marketing strategy is the legality of the practice, especially as it pertains to younger players and children, which has been the focus of a number of investigations in the European Union.
One specific way that legal arguments tend to lean when it comes to classifying these microtransactions, the chance-based loot boxes are often considered gambling, a classification generally accepted by most players. However, while many among both the legal and gaming community agree that the practice is a form of gambling, the EU has recently suggested a change in the way the system approaches these microtransactions.
A report conducted for the EU Internal Market and Consumer Protection Committee has recently come to the conclusion that the EU should stop approaching loot boxes as a gambling issue, and treat the practice as a consumer protection issue. The report concludes that while the problematic practice can be dangerous due to the way that it can prey on obsession and addiction, especially in younger players, gambling can only be regulated on a country to country basis. This would leave the rule of law for loot boxes and gambling in gaming fragmented among the Member States that make up the EU as each country will be allowed to create there rules separate from the others.
"Since gambling is a national competence of the Member States, approaching the issue from this angle may lead to a fragmented market for video games within the EU... It is therefore recommended to tackle problematic game designs from a wider consumer protection perspective." -Excerpts from EU report 'Loot boxes in online games and their effect on consumers, in particular young consumers'
As a result of this report, the recommendation has been made that loot boxes and problematic game designs be treated as a consumer protection issues, which the EU has the power to set standards for across all Member States. This conclusion comes from the risks that loot boxes can pose to vulnerable and younger players who either may build addictive behaviors, or not understand the true values of their purchases.
Whether this means that regulations will be put in place, like Australia's planned loot box age checks, is still up for debate, but this new reclassification would even out regulations across the entire EU.
The issue of loot boxes is still being debated around the world, even among the gaming community that has generally had a negative view on the problematic practice. However, as more and more stories like a UK student blowing $3800 on loot boxes come to light, more and more pressure is placed on legal systems to implement protections for young players who may be developing gambling addictions. In this case, reclassifying the practice in the EU could be a massive step towards addressing the problematic designs on a global level.
Source: Europarl (via GamesIndustry.biz)
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