Majority of Social Media Ads for Loot Box Games Fail to Meet Disclosure Requirements

A recent study by loot box researcher Leon Xiao examined the advertising practices of games with loot boxes on social media platforms, including Facebook, Instagram, Messenger, and TikTok. The findings indicate that the vast majority of ads for these games do not comply with UK and EU regulations regarding the disclosure of loot boxes and in-game purchases. Xiao analyzed ads for 63 games with loot boxes on Meta's platforms and found that only 11% of the ads provided notice of in-game purchases, while a mere 7% disclosed the presence of loot boxes. The situation on TikTok was similar, with only 7% of ads for games with loot boxes properly labeled. The research also revealed inconsistencies in disclosure practices among games, with only one game, Elder Scrolls Online, consistently disclosing both in-game purchases and loot boxes in all its ads. The study's findings suggest that the advertising industry has a long way to go in terms of complying with regulations and providing consumers with clear information about the presence of loot boxes and in-game purchases in games.