United Kingdom: DCMS publishes the consultation outcome on loot boxes in video games

On 17 July 2022, the UK Department for Digital, Culture, Media & Sport (DCMS) published its consultation results on the influence of loot boxes in video games. The consultation sought to understand the perspective of video game players, the way a loot box functions, the size of its market within the video game industry, the potential risks associated with the use of loot boxes, and the effectiveness of regulatory protections currently in place. The consultation response outlines that loot boxes can be defined as "features in video games that may be accessed through gameplay, purchased with in-game items or virtual currencies, or purchased directly with real-world money. Their distinguishing feature is the random reward mechanism that allocates apparently randomised items to each purchase." The harms identified with loot boxes are correlated with issues around gambling, mental health, and financial problems. However, the consultation found that there is very lacking data in the gaming industry overall and that no causal relationship has been proven between loot boxes and its potential harms. The regulatory protections for players already in place are the "Consumer Rights Act of 2015" and the Competition and Market Authority's "Principles for online and app-based games". The DCMS found that since its public consultation, additional legislation has been introduced to protect consumers when playing video games, like the Information Commissioner's Office (ICO)'s "Age Appropriate Design Code" to protect minors or the Committee of Advertising Practice's "Guidance on Advertising in Game Purchases". Concerning data governance, the consultation found that there is no transparency in how player data in regards to loot boxes is collected and processed and that gamers do not know how their data is processed. The conclusions that the DCMS draws from the evidence gathered include that children and teens should not have access to loot boxes unless there is parental supervision. All players, regardless of age, should have access to information about responsible gaming. More data collection on the gaming industry in general and on loot boxes that can inform better evidence and research is needed. Finally, the DCMS decided that the Gambling Act of 2005 should not be amended to include loot boxes.