Big tech companies are fined for failing to protect children in electronic games

Child playing on a computer in archive image Magnific/Reproduction The 1st Court for Children and Youth of the Federal District sentenced large international gaming companies and developers for the use of loot boxes – surprise boxes that offer rewards in exchange for payment – for exploiting the vulnerability of children and adolescents. The decision, which resulted in a fine of at least about R$ 300 million, is still subject to appeal.

Among the companies cited are Apple, Google, and Microsoft (see details below). The lawsuit was filed by the National Association of Centers for the Defense of Children and Adolescents (Anced) based on the Statute of the Child and Adolescent and the Consumer Defense Code.

In the rulings, signed on the 9th, the judge points out a link between loot boxes and gambling problems, as well as generating compulsion, frustration, and stress in children and adolescents. Fantástico gathers parents and children to talk about the Digital ECA "The user spends currency acquired with real money to submit to a draw of uncertain result, controlled by the supplier, from which an aesthetic or gameplay advantage may arise. This confirms, on a material level, the structural identity between functionality and gambling mechanics, regardless of the commercial name given to it," declares the magistrate. ✅ Click here to follow the g1 DF channel on WhatsApp. In a note (read the full text below), the association representing video game manufacturers stated that the sector "already has a wide variety of protection mechanisms" and that it "has been working on the implementation of additional measures." "The industry will remain engaged in dialogue with authorities, regulators, and other stakeholders with the goal of promoting positive gaming experiences for Brazilian players and families," says the entity. Decision The judge points out, in the decisions, that there is abusive advertising directed at children and adolescents, "which takes advantage of the deficiency of judgment and experience of the child and adolescent." According to the magistrate, another problem is the lack of "ostensible and clear disclosure of the real probabilities of obtaining each item, information held exclusively by the supplier." "The gravity of the conduct is high — systematic offering, in an electronic game with a broad global base and particular penetration among the Brazilian child and adolescent audience, of a random monetization mechanism without adequate warning and without probabilistic transparency, exposing a developing person to the risk of compulsive behavior and an informational defect that assaults the core essence of consumer rights," it says. The fine – which must be converted to the DF Child and Adolescent Rights Fund – for each company was: Riot Games (League of Legends): R$ 15 million; Ubisoft (Tom Clancy): R$ 8 million; Apple (App Store): R$ 50 million; Microsoft (Xbox): R$ 50 million; Google (Google Play): R$ 40 million; Sony (PlayStation Store and PlayStation Network): R$ 40 million; Konami (PES Mobile and Yu-GiOh! Duel Links): R$ 12 million; EA Games (FIFA, Madden NFL, NBA Live, NHL, EA SPORTS UFC Mobile, Apex Legends, Star Wars Battlefront II, Need for Speed Payback, and Plants vs.

Zombies Garden Warfare 2): R$ 20 million; Nintendo (Mario Kart Tour): R$ 5 million; Blizzard Entertainment (Call of Duty, Overwatch, and Hearthstone Heroes of Warcraft): R$ 18 million; Valve (Counter-Strike): R$ 10 million; Tencent (PUBG Mobile): R$ 50 million; Garena Agenciamento (Free Fire): R$ 15 million. G1 is trying to locate the legal defenses for Ubisoft, Konami, EA Games, Nintendo, Tencent, and Garena. Google stated it will not comment on the case.

The other companies did not comment by the time this report was last updated. The companies must also adopt the following measures: inclusion of an express warning on all reward box offer screens; ostensible, accessible, and visible disclosure, right on the purchase screen, of the exact probabilities of obtaining each item or category of items; implementation of an age verification mechanism; provision of a free and accessible refund system for reward box purchases made by users proven to be under 18 years of age. In case of non-compliance, a daily fine of R$ 100,000 is provided, initially limited to 30 days. What the sector says Read below the statement released by the Entertainment Software Association (ESA): "The video game industry considers the online safety of players – especially children and adolescents – a fundamental priority. The sector already has a wide variety of protection mechanisms, such as rating systems, parental controls, content moderation, and reporting tools, which help parents, guardians, and players make informed decisions.

Since the adoption of new safety standards in Brazil, companies in the sector have been working on the implementation of additional protective measures. The industry will remain engaged in dialogue with authorities, regulators, and other stakeholders with the goal of promoting positive gaming experiences for Brazilian players and families." Read more news about the region on g1 DF.