ASA Provides New In-Game Purchases Guidelines, Microtransactions and Loot Boxes Under Fire

Amid the ongoing review of the 2005 Gambling Act, the Advertising Standards Authority (ASA) of the UK published an updated version of in-game purchases guidance. According to the new regulations, game developers and publishers will have to follow new guidelines on advertising microtransactions and in-game loot box purchases. Stress-inducing in-game elements like “Best Value” signs or in-game timers are also among the features that the ASA is currently tackling.

The new guidance that ASA published includes regulations on in-game ads as well as common advertisements players can often see on TV or while browsing the Internet. The main focus of the updated guidance is to prevent advertisements that can lure players into making in-game purchases or provide misleading information on the value, availability, or price of in-game purchases.

New Guidelines Request Stating True Cost of In-Game Purchases

The purpose of the new guidance by the ASA is not to completely abolish in-game purchases but to ensure that game developers and publishers are transparent with players and provide the true cost of any in-app purchases that can be made. This issue mainly concerns in-game currencies that can often be misleading. The new ASA guidelines require games to clearly state the real-money value of in-game purchases. This means that players should always be aware of the true value of the in-game gems, coins, or other currencies they are about to purchase.

Another new guideline requires in-game advertisements to be transparent about the minimum amount required for the purchase of a specific item that has a lower value. For example, if players are required to spend at least £10 for a purchase of in-app currency that is worth less than that amount, they should be informed about the extra money that will be left in their balance. If players already have some in-game balance, they should also be informed about the cost they need to pay to add up to their available balance and make a specific in-app purchase.

Game Advertisements Need to be Transparent About Loot Boxes

Before purchasing a game, players should be aware of whether the specific gaming product features loot boxes. This should be done via notifications available on the official website of the store. Despite including guidelines on loot box advertisement, the ASA clarified that it has no authority to classify random in-game item purchases as a type of gambling. That said, the ASA shared that during its consultation on new in-game advertising guidelines, the organisation received multiple complaints and concerns about gambling-like loot boxes incorporated in games.

While the new ASA guidance is not trying to completely ban microtransactions, it is trying to protect customers from misleading advertisements. The ASA announced that while the new guidance is being implemented by game developers and distributors, the organisation will handle complaints informally for about six months. After that, the ASA plans to go back to its usual formal way of handling such cases.

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Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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