Website with basic guide to lootboxes
The 59-page report.
Basically, they are calling on enforcement for lootboxes or a complete ban of them. Don't want to read it all. Read the conclusion.
There are a few things in the report that I really like, but I don't think any of the games companies effected by this will like them, especially the part where they say that the algorithms they use should be made available for investigation into how they work and how they manipulate players to make sure they are fair. This report could potentially change everything if the countries who it has been created for take it in and act on it, only time will tell.Despite being a major industry, the video game sector has largely evaded
regulatory scrutiny. This might be because of the prevailing business models
being technically complex or somewhat novel or because video games are still
considered a niche entertainment market by many authorities. In any case, the
sheer size of the market and the number of affected consumers make it clear
that regulatory investigations and possible interventions should be high on the
agenda for authorities at national level and in the EU.
As the issues surrounding loot boxes are multifaceted and cross-sectoral, it is
crucial that experts from different regulatory authorities cooperate to exchange
information and resources when looking into the video game industry. Relevant
authorities include those responsible for sectors such as gambling, consumer
rights and competition, as well as audio-visual regulators.
Although there have been several initiatives to self-regulate or to increase
transparency in loot box mechanisms, these have proven less than satisfactory.
The combination of deceptive design, randomized rewards, virtual currencies,
and exploitation of cognitive biases is too powerful to enable consumer
education or transparency-increasing measures to ameliorate the harm caused
by these practices.
Based on these cases and a broader overview of the industry, we present
several proposals for industry, regulators, and policymakers:
7. Video game companies must be banned from using deceptive design to
exploit consumers. When consumers engage in video games,
companies must ensure that their decisions are not impacted to the
detriment of the consumer, by the design and operation of game.
8. All In-game purchases should always be denominated in real-world
currency. At the very least, real-world currency values should be
provided alongside virtual currencies, where virtual currencies are used.
9. Protection of minors:
a. Games likely to be accessed by minors must not offer loot
boxes, or other randomized content in exchange for real
money.
b. Games likely to be accessed by minors should not contain “pay-
to-win" mechanisms.
10. More transparency:
Page 58 of 59
a. Researchers and regulators should have access to the
algorithms and datasets that is are involved in the loot boxes to
conduct independent research in the public interest.
b. In cases where algorithmic decision-making is employed to
influence consumer behaviour, the consumer must be explicitly
informed. The disclosure must include information in plain
language about what algorithms are trained to achieve and
which factors are used. In addition, the consumer should have
the option to use the game without algorithmically driven
decision-making that aims to influence consumer behaviour.
11. Better and more enforcement
a. Consumer enforcement authorities must have the necessary
resources and expertise to take enforcement actions, thus,
protecting consumers in digital markets, including against video
game companies.
b. Consumer protection authorities should ensure that existing
and future consumer rights are enforced in the gaming industry
as well.97
12. If other remedies do not alleviate the problems, consider a ban of paid
loot boxes.
Although the video games industry is amongst the largest entertainment
industries, it has often eluded serious regulatory oversight. Therefore, we
call for stronger regulatory action against video game companies that fail to
respect consumer rights and that prey on consumer vulnerabilities