The Advertising Standards Agency (ASA) has upheld a complaint against an advertisement about a video game by Electronic Arts (EA) over the nature of the game and the fact that it contained loot boxes.
ASA agreed with an objection lodged against the company’s Golf Cash game which claimed that the title and its promotional materials had failed to adequately disclose to consumers that the game contained loot box mechanics and random item purchasing.
The watchdog has called the lack of transparency about the loot box mechanic "material," as consumers need to be aware of such features about a game before they plan whether to purchase or download a product.
"Because the presentation of the text within the context of the ad overall was not presented clearly, we concluded the ad was likely to mislead consumers to the presence of loot boxes within the game, which we considered to be material information," ASA’s final statement read.
The Golf Cash ad in question appeared on Facebook in March 2024, which showed excerpts of the title’s gameplay. EA has tried to convince ASA that it had adequately informed consumers about the loot box mechanic, by featuring a quick message at the bottom of the ad’s screen that said:
"Includes optional in-game purchases (includes random items)"
The message itself disappeared shortly after it had been displayed. EA’s ad came under fire after a complaint was lodged by an academic researcher who took issue with the nature in which the company had advertised Golf Cash.
According to the researcher, EA had failed to sufficiently inform the public about the loot box features of their game.
EA tried to refute these claims arguing that it had informed the public about random item purchasing in its game, citing that ASA’s guidelines did not specify how this should happen specifically.
In other words, EA had followed the letter of the CAP Code such as had been provided by the regulator. EA also insisted that no regulation specifically obligated publishers and developers to emphasize "prominence." Rather, the company said, consumers must find the information easily.
Similarly, the company argued, that the ad itself already explained that Golf Cash was a game where in-game purchases were possible, and that alone should have informed customers about the availability of such rewards.
EA acquiesced that in light of having lost its case in front of the ASA, it would now move on to revise its internal marketing practices so that they are more firmly aligned with the CAP Code.
As to ASA, the watchdog determined that EA had breached CAP Code rules 3.1 and 3.3, which have to do with "misleading advertising."
Loot boxes have long been a contentious part of the gaming landscape in the United Kingdom. Although attempts have been made to equate them to gambling, they have fallen short of being regulated as such.
Yet, around the world, from Australia to the United States, lawmakers are taking a longer, harder look at how loot boxes work and whether they should not be put in the same category as gambling specifically. In the meantime, safeguards around consumer protection related to loot box games have increased.
Image credit: Unsplash.com