The UK Advertising Standards Authority (ASA) has ruled against three mobile game developers for failing to adequately disclose the presence of loot boxes in their app store listings, finding the advertisements to omit material information required under advertising standards.
The rulings, all of which were announced on 19 November, involved Kabam Games' "Marvel Contest of Champions," Hutch Games' "F1 Clash" and Nexters Global's "Hero Wars: Alliance RPG."
All three games, rated 12+, displayed "offers in-app purchases" labels on its app store listings, but did not explicitly inform consumers that purchases included random-item mechanics.
The ASA determined the presence of loot boxes constitutes material information affecting consumer download decisions, particularly for vulnerable individuals.
Under CAP Code guidance, developers must clearly indicate when games contain random-item purchasing, with such information appearing immediately adjacent to general in-app purchase disclosures.
While all three listings mentioned in-app purchases and displayed pricing, none specified that certain purchases involved randomised rewards.
The F1 Clash ruling addressed additional issues: the game's "Golden Spin" feature was upheld as misleading because its visual design suggested equal winning probabilities when actual odds varied significantly. However, the ASA did not uphold a complaint regarding the game's "Up to x10 Better Prizes" claim, finding it substantiated when compared to the free daily spin.
Kabam acknowledged overlooking disclosure requirements and committed to updating descriptions.
Nexters stated its approach followed earlier industry practice but confirmed updates were implemented. Hutch noted limitations imposed by app store formatting but argued its disclosure appeared prominently within available space.
The ASA instructed all three developers to clearly communicate loot box presence in future advertisements and told Hutch to avoid implying equal prize probabilities when odds differ.
These rulings follow previous ASA actions against gambling operators, including October decisions against Betway, Kwiff and Sky Bet for advertisements deemed to have strong appeal to underage individuals
