90% of Mobile Games with Loot Boxes Don’t Disclose Them in Ads, Study Finds

A recent investigation by the BBC has revealed a disturbing trend in mobile gaming: the vast majority of top-grossing games fail to disclose the use of loot boxes in their advertising.

Loot boxes, which allow players to purchase or earn randomized digital items, have been criticized for promoting addictive behaviors and exploiting consumers.

Despite regulatory guidelines, the report shows that only two out of the 45 highest-grossing games on the Google Play Store adhere to advertising rules requiring transparency about loot boxes.

Monopoly GO Under Scrutiny

The report highlights Monopoly GO, a game developed by Scopely and owned by Hasbro, as one of the offenders. Despite generating over $3 billion in revenue and being downloaded more than 50 million times, the game’s advertisements fail to clearly mention the presence of loot boxes. This omission directly violates the guidelines established by the UK’s Advertising Standards Authority (ASA).

The ASA mandates that game advertisements clearly disclose loot boxes to inform consumers about potential risks. When advertisers fail to comply, the ASA has the authority to remove non-compliant ads. However, critics argue that enforcement is slow and insufficient.

Leon Y Xiao, a game regulation researcher, explained that companies often ignore regulatory recommendations, leaving players unaware of the risks associated with loot boxes. He told BBC that over 90% of games with loot boxes fail to disclose their presence in advertisements.

According to reports, loot boxes generate approximately $15 billion annually for gaming companies, but their lack of transparency raises ethical questions.

Sources: BBC News