EU draft would bar paid loot boxes for under-18s

Under plans put forward by the European Commission on 11 November video game publishers would have to show players what they could get from a paid loot box. They would also have to inform them how likely they were to get the prize.

The draft Digital Fairness Act would also ban sales of paid random rewards to children in games aimed at them. This also implies when publishers know with reasonable certainty that children are playing. Gambling firms face a separate change when they hire influencers to promote their products.

Players could switch loot boxes off

Article 15 covers random rewards bought with money or with in-game currency that players have paid for. That means a loot box bought with a bundle of paid-for coins would come under the same rules as one bought directly. The Commission also lists virtual card packs and prize wheels as examples of features that could be covered.

Publishers would have to make it easy for players to turn off paid random rewards. Under a separate provision, games aimed at children (or known with reasonable certainty to be used by them) would also have to remove features that charge those players to advance through the game or gain an advantage over others.

The European Commission says paid random rewards “share the speculative features of gambling”.

Gambling brands would share responsibility for influencer posts

Article 11 would require influencers to make it clear when a post is an ad. It would also prohibit them from promoting products where advertising is already banned under EU or national law.

The Commission singles out betting, lotteries and other gambling products in its explanation of why children may be particularly vulnerable to influencer marketing.

The proposed duties would also reach the businesses that arrange those posts. A bookmaker hiring a creator through an agency would need to account for the rules when drawing up the campaign. The draft wants contracts to follow compliance. It says businesses must take other appropriate steps where there is no contract. This includes when a creator receives gifts or invitations.

When would the rules apply?

The proposal would replace the EU’s  2005 Unfair Commercial Practices Directive with a regulation that would apply directly across member states. The European Parliament and the Council still have to agree the text. Under the Commission’s draft, the rules would apply 12 months after the regulation enters into force.

Where the audience is based matters. For example, UK-based operators and agencies running campaigns aimed at EU consumers. The Commission’s proposal covers traders targeting consumers in the EU. This includes businesses established outside it. Where national law already prohibits a gambling ad, Article 11 would expressly carry that restriction over to influencer marketing.