Global Loot Box Legislation in 2025: A Year of Change and Non-Compliance

The past year has seen significant developments in loot box legislation globally. In the US, the Federal Trade Commission settled with Cognosphere, the distributor of Genshin Impact, over allegations of violating children's privacy and consumer law. The settlement included a $20 million fine and requirements for game design changes, such as prohibiting under-16s from purchasing loot boxes without parental consent and disclosing accurate probabilities of winning. However, the new FTC chair has expressed dissenting views on loot box regulation, which may impact future enforcement. In Brazil, a new law prohibits loot boxes in games aimed at children and teenagers, while in Australia, games with in-game purchases linked to chance must be rated at least M. The EU has seen several key developments, including the publication of key principles on in-game virtual currencies and guidelines on protecting minors under the Digital Services Act. The UK has struggled with poor compliance and enforcement of industry self-regulatory principles, and the government's research on the issue has been delayed. Other countries, such as South Korea and Turkey, have also implemented or enforced loot box regulations. The International Consumer Protection and Enforcement Network has published a study on manipulative design practices in video games, highlighting the need for companies to prioritize transparency and fairness. As the regulatory landscape continues to evolve, game developers and publishers must stay informed and adapt to ensure compliance and avoid future headaches.