UK’s Bold Move: New Loot Box Laws Protect Youth!

The UK games industry has taken a significant step forward in addressing concerns surrounding loot boxes. In a recent update, the industry has agreed to a set of principles and guidelines that will regulate the sale and use of loot boxes in the country.

Key Developments

• The primary principle will prohibit anyone below 18 years of age from obtaining a loot box without the explicit consent or knowledge of a parent, guardian, or carer.
• Ukie, the UK games industry trade body, unveiled 11 principles and guidance on paid loot boxes. This move aims to bolster protections for all players.
• A £1 million public information campaign spanning three years is set to launch, with broadcaster Judi Love at the forefront. This initiative, which kicks off in July, will inform and guide parents on using parental controls. These controls will help regulate in-game purchases, including loot boxes, screen time, online interactions, and access to age-appropriate content.
• The decision to implement these principles followed discussions with the UK Government’s Department for Culture, Media and Sport (DCMS), along with other government bodies, academics, advocacy groups, and consumer groups.

Industry Voices

Daniel Wood from Ukie commented on the new loot box law, stating,

“The principles will improve protections for all players and underlines the industry’s commitment to safe and responsible play. We look forward to working collaboratively across industry and with others to implement them over the coming months.”

John Whittingdale, Minister for the Creative Industries, expressed his views on the matter:

“We’ve been clear the video games industry needs to do more to protect children and adults from the harms associated with loot boxes. These new principles are a big step forward to make sure players can enjoy video games responsibly and safely. I look forward to seeing games companies put the plans into action and will be watching their progress closely.”

Ukie Co-CEO, Daniel Wood, emphasized the significance of these principles, noting that it’s a first for the UK and provides a clear path forward.

Historical Context

This move comes nearly four years after a DCMS Committee suggested that the UK Government prohibit the sale of loot boxes to minors. Just a year ago, Nadine Dorries explained the government’s decision not to ban the sale of loot boxes to children, despite recognizing potential risks to the youth. However, the recent first principle indicates a shift in this stance.

UK video games industry principles relating to Paid Loot Boxes

(1)      Make available technological controls to effectively restrict anyone under the age of 18 from acquiring a Paid Loot Box, without the consent or knowledge of a parent, carer or guardian. Technological controls shall be easy to use, activate and access and are introduced to all parents, carers and guardians through start up processes and unboxing.

(2)      Drive awareness of and uptake of technological controls with all players, parents, carers and guardians through regular communications, starting with an immediate targeted public information campaign. The impact of campaigns will be assessed at regular intervals and the campaign development will involve input from players, parents and third-party groups.

(3)      Form an expert panel on age assurance in the games industry. The group will meet regularly to develop and share best practices on age assurance in the video games industry, stay apprised of technological advancements and explore opportunities to develop improved systems for determining age and obtaining parental consent. The group will engage with relevant regulators and policymakers where necessary on an ongoing basis. 

(4)      Disclose the presence of Paid Loot Boxes prior to purchase and download of a game so that players can make informed choices.  Platforms, publishers, and developers commit to use the PEGI or equivalent proprietary age rating system on their storefronts and in game to always provide transparent information to players, parents, carers and guardians.

(5)      Give clear probability disclosures, making sure that players can easily access clear and simple information on the probability that they will receive given virtual items or categories of virtual items or other elements in a Paid Loot Box before they acquire or open it. Players should also be informed if their data is used to influence gameplay experiences with Paid Loot Boxes, and given relevant details.  

(6)      Design and present Paid Loot Boxes in a manner that is easily understandable to players, and which promotes fair and responsible play.  Members of the industry working group also reaffirm their commitment to the OFT’s principles for online and app-based games and consumer law.

(7)      Support the implementation of the Video Games Research Framework, to facilitate the creation of better quality, data driven research into video games that adheres to the principles of open science while respecting data privacy and confidentiality.

(8)      Continue to tackle the unauthorised external sale of items acquired from Paid Loot Boxes for real money, and continue to invest in IP protection to combat such sales. Members of the working group will continue to invest in and protect their intellectual property, enforce their terms of service, and where possible take action against unauthorised sale of items through third party sites. Industry is committed to an ongoing dialogue with Government, regulators and law enforcement agencies on this issue and welcomes additional assistance from such bodies in combating such unauthorised sales.

(9)      Commit to lenient refund policies on directly purchased Paid Loot Boxes or purchased in-game currency used to acquire Paid Loot Boxes, with clearly displayed contact routes for customer services. Members of the working group commit to fair and prompt refund policies where spending has demonstrably occurred without parental consent or knowledge and will provide clear instructions on how to turn on parental controls where issues persist.

(10)   Advance protections for all players. Members of the working group are committed to providing all players with information about how to play responsibly and manage their spending effectively on Paid Loot Boxes. We will continue to engage with third party organisations, players, parents, and academia to benefit from their learnings and experience including any new research developed through the Video Games Research Framework.

(11) Work with UK Government and other relevant stakeholders to measure the effectiveness of these principles following a suitable implementation period of 12 months. Members of the working group commit to a periodic review of these measures following their implementation alongside Government in order to assess these measures, assess the effectiveness of public information campaigns and take into account further technological innovation in the sector.

Via Esports News UK