MY.GAMES violated the requirements for loot boxes and game advertising in the Netherlands
The Dutch authority Stichting Reclame Code (SRC), responsible for ensuring compliance with advertising standards in the country, found MY.GAMES in violation of regional regulations. They were dissatisfied with how the company communicates certain aspects of Rush Royale to players, including loot boxes.
SRC rendered its decision in response to a complaint filed in 2024 by lawyer and loot box researcher Leon Y. Xiao. After a thorough investigation and two appeals from MY.GAMES, the agency upheld five out of six points of the complaint.
Specifically, SRC instructed MY.GAMES to:
- add information about the presence of loot boxes in Rush Royale on the game's App Store page and in promotional posts on social media;
- disclose the probability rates for items dropping from loot boxes;
- indicate prices for in-game items not just in in-game currency, but also in euros;
- clearly and unequivocally communicate the presence of in-game advertising in Rush Royale using child-friendly language. They also need to disclose the list of advertisers;
- stop encouraging young gamers to "advertise" the game themselves. For example, through promotions like "invite a friend," where the company rewards bonuses for each new user brought in.
Note that SRC is not a regulator in the Netherlands, but a so-called self-regulatory organization. The agency can check companies' actions for compliance with laws and regulations, but cannot impose sanctions. The recommendations they issue are more of a strong suggestion. Officially, the Dutch Authority for Consumers and Markets (ACM) oversees the commercial practices of companies.
MY.GAMES informed the media that it has already addressed most of the violations identified by SCR and is currently working on resolving the remaining issues.