Lawsuit on loot boxes filed against Apple.
Apple, a tech company situated in Silicon Valley, US, is facing a class action lawsuit from parents who want to hold the iPhone maker responsible for the distribution of loot box games. The dispute over whether these random treasure chests are gambling components that endanger children and teens has been ongoing for years. Now, the lawsuit is intensifying the debate.
Advantages from In-Game Boxes for Small Amounts of Money
Just a few months after the lawsuit against EA in France, a potential class action lawsuit against tech giant Apple concerning loot box games in California, US, is on the horizon. The plaintiffs are a group of parents who argue that the controversial loot box elements facilitate gambling addiction in children and teens. Apple would be contributing to their spread and profiting from them.
Loot boxes are virtual treasure chests in video games and mobile game apps, such as Mario Kart Tour. They contain a variety of game benefits like weapons, tools, outfits, or costumes, which can provide a competitive advantage. The key to a chest is available for small amounts of money, known as microtransactions. The contents of each chest are unknown until it's opened.
According to the plaintiffs, these chests are therefore gambling elements that encourage risky gaming behavior in youngsters. Such products should be considered illegal in California. Although Apple doesn't manufacture the games, it promotes them through its App Store and profits immensely. The company collects a 30 percent commission from in-app purchases.
Age Ratings Under Attack
The lawsuit was filed at the United States District Court for the Northern District of California. One of the main demands is that Apple return all earnings from the distribution of loot box games to date. Additionally, it should be forbidden for the company to distribute loot box games via its App Store in the future.
Criticized are the low age ratings of the games, allowing them to be downloaded by children. Games mentioned include Mario Kart Tour from Nintendo, available for ages 4 and up, as well as FIFA, accessible from age 4, Brawl Stars (age 9), and Roblox (age 12).
Are Loot Box Games Likely to Gambling?
Furthermore, Apple has required game providers to specify the odds of winning in their loot box elements since 2017, as revealed in its guidelines. The plaintiffs claim that this is essentially a form of a lottery. Apple is aware that it is facilitating a gambling element. The addition of the guidelines is simply a minor precaution due to growing criticism.
In the past few years, Apple has been criticized by child protection organizations, addiction researchers, and parents. Despite that, loot box games have been increasingly popular. Apple has not previously classified these games as gambling or simulated gambling.
The discussion about loot boxes started in November 2017 with controversies surrounding the game "Star Wars: Battlefront 2". The politician Chris Lee, a member of the Hawaii House of Representatives, compared it to an online casino for children and teens. Since then, the risks of loot boxes have been a hot topic in Europe and the US. In social media, critical voices have become louder.
Apple has been under fire from critics. The company generates massive revenues through these games. In 2018, Golem reported that Apple's earnings were about one billion US dollars. The loot boxes are bought as in-app purchases. Similar to "Clash of Clans," the game's revenues have a 90 million US dollar margin yearly.
Bans in the Netherlands and Belgium
In countries like the Netherlands and Belgium, loot box elements are already prohibited, and stricter legal actions are taken against violators. These games are subject to gambling laws in these countries. Belgium had already initiated legal action against FIFA developer EA Sports in September 2018. By the beginning of 2019, the publisher yielded and removed the loot boxes from the market.
Now, calls for bans and labeling are occurring in the UK and the US. The debate in the UK is ongoing, while in the US, a decision was made in April last year to label loot box games. This label informs consumers that the games feature random elements. However, Apple could not prevent this from happening before a class action lawsuit. The situation remains under observation.
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Source: www.onlinecasinosdeutschland.com
