ASA Rules Hutch Games Violated CAP Code on Loot Boxes

Summary:

• Hutch Games failed to clearly indicate that two of its games contained loot boxes
• The act was in breach of the Advertising Standards Authority advertising codes
• Hutch Games was ordered to change its ads so they won’t appear again in its current form

The Advertising Standards Authority (ASA) has ruled that the taglines used by mobile games developer Hutch Games to promote and market two of its products were not in line with the UK’s advertising codes.

The ruling arises from two complaints filed by an academic researcher in the field of game regulation who raised concerns about Hutch Games’ failure to disclose that the games in question contained a random item purchasing feature, otherwise known as “loot boxes”.

Did Not Disclose Presence of Loot Boxes

Loot boxes are in-game features in video games that allow players to buy mystery virtual items using real money or in-game currency. Players won’t know the contents of the boxes until they’re opened, and because of this, many advocacy groups and campaigners believe loot boxes must be treated as a form of gambling and must be regulated.

Such concerns have led some countries, including Belgium and the Netherlands to ban loot boxes in their respective jurisdictions.
In the UK, there is currently no specific regulation governing loot boxes. Hence, they cannot be considered illegal in the country. However, there are rules and guidance for companies when it comes to advertising products that contain loot boxes.

The UK’s advertising codes, written by the Committees of Advertising Practice (CAP), require all mobile games developers to make clear if a game contains loot boxes or random-item purchasing, as the presence of that particular feature could influence consumers’ decision to purchase or download a game, especially those with vulnerabilities.

As per the complaints, the two games in question developed by Hutch Games, “Rebel Racing” and “F1 Clash – Racing Manager”, contained loot boxes but the company did not specify that when it listed the products on the app store. Instead, Hutch Games used the taglines, “Free – Offers In-App Purchases” and “in-app purchases”. The complainant argued the omission of information regarding the presence of loot boxes violated the CAP Code.

Hutch Games Ordered to Update Ads on Games with Loot Boxes

In its response, Hutch Games confirmed the two games contained loot boxes and acknowledged that it misinterpreted the CAP guidance. ASA upheld the two complaints, ruling that Hutch Games’ taglines breached the CAP Code as they misleadingly omitted material information. The company has been ordered to update the ads and clearly indicate whether games contained loot boxes.