The Advertising Standards Authority (ASA) has responded to two complaints concerning Hutch Games, both submitted by Leon Xiao, an academic affiliated with the Centre for Digital Play at the IT University of Copenhagen. The first complaint focused on the mobile game F1 Clash – Car Racing Manager, which was available on the Apple app store in May 2023. The game was labeled as free to download, but users could purchase in-game items using real money. The complainant contended that the app's description failed to clarify that it involved random item purchases, commonly referred to as loot boxes, that let players unlock random items through monetary transactions.
Hutch Games asserted that players could progress in the game without spending money, believing this meant they had not omitted crucial information from the advertisement that would influence a prospective user’s decision to download the game. The company cited CAP guidance, which states that if players can earn virtual currency within the game, then related purchases do not fall under advertising regulations. Since users could acquire in-game Bucks through gameplay, Hutch argued that their ad complied with the guidelines. However, after being informed of the complaint, the company acknowledged a misunderstanding of the CAP guidance and plans to revise the product listing on the Apple app store.
The ASA ruled that the ad had misleadingly omitted material information, despite Hutch's argument regarding the possibility of earning in-game currency. The ASA clarified that while this distinction applies to storefronts and purchase incentives within the game, product listings on app stores are subject to the CAP code. The ASA noted that the advertisement referred to in-game purchases but did not adequately disclose what these purchases entailed, particularly concerning the availability of loot boxes. "We therefore considered the information in the ad was not sufficient for consumers to understand that the in-game purchases included loot boxes," the ASA stated, concluding that the ad misrepresented material information crucial for consumer decisions.
Accordingly, the ASA found Hutch Games' advertisement breached CAP code (edition 12) rules 3.1 and 3.3 related to misleading advertising and ordered that the ad not be used again in its current form. Hutch was also directed to clarify whether other games feature loot boxes.
A second similar complaint was raised concerning Rebel Racing, where the ad failed to mention the presence of loot boxes. Hutch Games reiterated nearly identical arguments about players' ability to progress without spending money and the possibility of earning the in-game Keys currency. Once again, they admitted to misinterpreting the CAP guidelines regarding advertising in-game purchases.
The ASA reached a similar conclusion, emphasizing the lack of information in the Rebel Racing advertisement concerning in-app purchases and the availability of loot boxes. "Because the ad did not make clear that the game contained loot boxes, which we considered was material to consumers’ decisions to download the game, we concluded that the ad misleadingly omitted material information," the ASA said, enforcing the same ruling as for F1 Clash.
A spokesperson from Hutch Games acknowledged the error in their store page listings for both Rebel Racing on the Google Play Store and F1 Clash on the Apple App Store, stating, "We have immediately corrected this mistake. We are ensuring that all future listings contain the correct information going forward."
Concerns around loot boxes and their potential link to gambling have gained traction, particularly regarding their presence in games aimed at children. In July, UK Interactive Entertainment (Ukie), the trade body for the UK games industry, published guidelines suggesting age-restricting loot boxes to those aged 18 and over. This recommendation arose from a technical working group established in July 2022 by the Department for Culture, Media and Sport (DCMS), following the government's findings from a call for evidence on loot boxes launched in September 2020. Discussions around loot boxes are also occurring in other regions, including Germany, where the upcoming Federal Congress on Gaming and Gambling will address this and related topics. Additionally, WestLotto, the state lottery of North-Rhine Westphalia, has called for conversations among political, scientific, and industry stakeholders about loot box regulations.
