UKIE outlines 11 principles for regulation of loot boxes

There has been growing evidence that loot boxes, if left unchecked, could cause harm to individuals. Although regulators have been short of calling loot boxes a form of gambling in the United Kingdom in particular, many other jurisdictions have acted preemptively.

The Netherlands and Belgium have taken a gung-ho approach, and Australia is taking a harder look at these digital containers, but then again, so is the UK.

A new publication by UK Interactive Entertainment (UKIE), a trade group that represents 700 members of the video gaming and interactive entertainment industries, has published a set of 11 principles as part of a Technical Working Group which was organized with the help of the Department for Culture, Media, and Sport (DCMS).

The goal was to introduce core rules that can help approach loot boxes in a way that protects consumers and insulates at-risk individuals from the potentially pernicious influence of the digital goods found in video games that are accessible to players.

Loot boxes, opponents of the in-game purchases argue, bear too many similarities to gambling products as they offer a randomized reward in exchange for digital currency – which is first bought with real money. The 11 new principles put forward by UKIE, though, attempt to narrow the room for harm and have been welcomed by the DCMS.

Essentially, the principles want to see U-18 individuals not be able to access loot boxes without the knowledge of a guardian. There should also be a drive of awareness and uptake of technological controls to educate the public on the potential dangers of loot boxes.

Games should also disclose that they contain loot boxes prior to a person buying the game, and the loot boxes have to be designed in a way that promotes responsible and fair play. Loot boxes should also come with lenient refund policies if a purchase occurred without the knowledge of a guardian or a parent.

Companies that offer loot boxes will have to also seek to actively collaborate with the UK government in order to implement and strengthen these principles as and when needed. Commenting on the proposals, UKIE Co-CEO Daniel Wood said that the proposals were a guideline for the industry to approach loot boxes in a clear and sustainable way.

"The Principles will improve protections for all players and underlines the industry’s commitment to safe and responsible play," Wood added. UKIE is also launching a £1m three-year public information campaign to help educate parents and potentially at-risk players about loot boxes.

The UK government has welcomed the news and congratulated the stakeholders that participated in making this happen.

"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," added UK Minister for the Creative Industries John Whittingdale, confident in the success of the measure.

Loot boxes were said to be regulated as part of the government’s Gambling White Paper, but the idea was dropped along the way.

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