On 26 February, the UK Advertising Standards Authority (ASA), the UK’s advertising regulator, issued an Enforcement Notice concerning the disclosure of loot boxes in mobile game advertising and app store listings. For these purposes, “loot boxes” are random-item generators that can be acquired with real money, or with virtual currency obtainable only through real-money purchases. The notice was prompted by the ASA’s concern that mobile game publishers are failing to adequately disclose the presence of loot boxes in their games.
The ASA will begin actively monitoring compliance from 26 May, with targeted enforcement action to follow.
An Enforcement Notice is essentially a warning to the relevant sector that the regulator intends to focus on this issue more intensively starting from the relevant date, giving the relevant businesses an opportunity to ‘get their house in order’.
We can expect a string of adjudications from the ASA (which enforces the CAP and BCAP Codes) on this subject in the months to come.
Under CAP Guidance, the presence of loot boxes in a game is considered material information. This means the presence of loot boxes must be presented to consumers before they purchase or download a game (particularly for those with gambling-related vulnerabilities).
This can be achieved with a disclosure statement such as “Includes random-item purchases” or “Contains loot boxes” in a prominent location within advertising and app store listings.
Players should not need to expand hidden sections or scroll through game descriptions to find it. Note that built-in app store labels such as “Offers In-App Purchases” are not generally sufficient on their own. Loot box disclosures must be presented prominently alongside, or as part of, any in-game purchasing information.
If your game incorporates loot boxes, review your advertising and app store listings to ensure the appropriate disclaimers are included.
Bear in mind that the global loot box regulatory environment is fragmented. This is largely due to a lack of harmonisation of gambling regulation and consumer protection laws across many jurisdictions that have developed in different directions over time. Territories with a particular interest in regulating and taking enforcement action in relation to loot boxes include Brazil, Netherlands, Poland, Belgium and recently there has been action in the US. It is a good time to reflect on your global loot box approach, and update any internal policies.
If you would like to discuss this further, please contact Sophie Lewis and Kostyantyn Lobov.
Kostyantyn advises on all aspects of intellectual property, advertising and regulatory issues. Being a litigator by background, he can advise at all stages of a dispute; from early-stage strategy and negotiations to litigation in the High Court and beyond. A significant part of his practice involves co-ordinating advice for projects spanning multiple jurisdictions. He also advises on the practical application of advertising codes and investigations by regulators such as the ASA, CMA and Trading Standards.
Kostyantyn works extensively with clients in the video game and esports sectors, including studios and publishers of all sizes. His wider client base includes brand owners, production companies and various members of the creative industries, tech startups, importers and distributors. They range in size from SMEs to multinational corporations with large in-house legal teams.
Kostyantyn is recognised as a leading lawyer in The Legal 500, IP Stars, and Chambers and Partners.
Sophie advises video game studios, developers, publishers and platforms on digital regulation and compliance. Her practice covers consumer law, advertising regulation, AI law, age ratings, loot boxes, gambling regulation, virtual currencies, micro-transactions, subscription models and online safety. Sophie has direct experience managing regulators, including responding to ASA investigations and a six-month secondment in the Consumer Enforcement Team at the UK's Competition and Markets Authority. She often coordinates multi-country projects for clients expanding internationally, translating complex regulatory frameworks into practical compliance plans.
She also supports clients on a wide spectrum of commercial contracts, including development agreements, publishing agreements, IP licences, EULAs, terms and conditions, influencer agreements, talent contracts, subscription agreements, NDAs and other service agreements. Sophie has a keen personal interest in video gaming and is passionate about supporting this sector. She regularly provides training on games regulation and breaks down complicated compliance issues for a range of audiences, from developers to legal teams and business operations.
Sophie is recognised as a key lawyer and leading associate in Legal 500 for video games.