ANCED, the Brazilian Association for Child Safety, has filed seven class action lawsuits against game developers in relation to the use of loot boxes in games. Brazil joins the US, Japan, France and Canada as jurisdictions that have seen class action lawsuits being filed in relation to the use of loot boxes.
Whilst many claims have been defeated by gaming companies, potential exposure is a growing risk. Loot boxes are also firmly within the crosshairs of regulators, with varying intensities of practical implications around the world, to point to a few just for example:
- The Netherlands and Belgium have introduced comparatively strict restrictions on loot boxes.
- In Australia and Germany, if games contain lootboxes, that must be displayed as part of the ratings classification.
- In Korea, pay-out rates of items must be disclosed.
Loot boxes will continue to draw attention from potential claimants and authorities, so it’s important to stay the right side of the line, though that is starting to get more and more complex as requirements fragment around the world.
The Association for Child Safety (ANCED) filed seven class actions against game developers and companies that host platforms for game downloading, seeking an injunction to ban loot boxes in online games. Although there is no regulation for loot boxes under Brazilian statutory legislation, the class Plaintiff alleges loot boxes are harmful for children and teenagers, as it may trigger gambling disorders and it is largely based in advertising for children, which is strictly regulated under Brazilian law.