Study finds 93% of social media ads for loot box-containing games non-compliant with UK, EU consumer protection law

A study from the IT University of Copenhagen reveals a high rate of non-compliance in social media advertising for gambling-like loot boxes in video games, with only 7% of ads disclosing their presence as required by UK advertising regulations and EU consumer protection law.

The work is published in the journal Computer Law & Security Review.

A total of 185 ads for popular games on Meta (Facebook, Messenger, and Instagram) and the 100 most-viewed TikTok video game ads were analyzed, finding that 93% were misleading by omitting essential information and therefore illegal. The study highlights major concerns. The 93 most-viewed illegal TikTok ads were seen over 292 million times by UK consumers alone, or 11 impressions per active user.

Loot boxes raise significant concerns due to their resemblance to gambling mechanics, as they allow players to spend real money for randomized rewards. This unpredictability can encourage repeated spending, potentially fostering addictive behaviors similar to those seen in traditional gambling, especially among young users.

Given that many loot boxes appear in games accessible to children, experts worry about their potential to drive overspending and lead to long-term financial and psychological impacts.

Stricter enforcement is required to protect consumers, especially young users, from uninformed gambling-like purchases. Social media must be better regulated.

Provided by
IT University of Copenhagen