Apple sued for allowing loot boxes in App Store
Apple on Friday was hit with a proposed class action lawsuit targeting loot boxes in games and apps, a mechanism typically characterized by in-app purchases that present buyers with randomized digital rewards.
A complaint filed with the U.S. District Court for the Northern District of California alleges Apple is complicit in promoting gambling and addictive behavior by allowing developers to market apps and games with loot boxes on the App Store.
"Not unlike Big Tobacco's Joe Camel' advertising campaign, Apple relies on creating addictive behaviors in kids to generate huge profits for the Company," the complaint reads. "Over the last four years Defendant's App Store games have brought in billions of dollars, even though the vast majority of the games are free to download."
Loot boxes are broadly defined as in-app purchases that grant users rewards, boosts, costumes, skins, weapons, or other special items. Popular in games, loot boxes provide a randomized chance to gain premium items, a mechanic that some closely associate with gambling. Indeed, real money is spent to obtain these special goods, sometimes through an in-game currency system.
Apple is being targeted by the complaint because it profits from in-app purchases.
"A large percentage of Apple's revenues from App Store games come from the in-game purchases of what are known in the gaming industry as loot boxes' or loot crates,'" the lawsuit alleges. "Dozens (if not hundreds) of App Store games rely on some form of Loot Box or similar gambling mechanism to generate billions of dollars, much of it from kids."
Named plaintiff Rebecca Taylor claims her son, "C.T.," spent at least $25 in iTunes gift cards and his parents' money on loot boxes for Supercell's Brawl Stars. C.T. continues to have access to the iPhone and iPad on which Brawl Stars and other "freemium" games are installed. The complaint does not address Apple's parental control and App Store features that restrict minors from purchasing digital content without a parent's permission.
Also mentioned in the complaint are Mario Kart Tour, FIFA Soccer, and Roblox, which along with Brawl Stars constitute some of the most popular games on iOS.
Apple is also dinged for not explicitly noting the inclusion of loot boxes in App Store descriptions and allowing developers to age rate their own products.
"Thus, there is no notice - and no requirement of any notice by Apple - to the parent or the child that a game contains Loot Boxes or other gambling mechanisms," the complaint reads.
In sum, plaintiffs conclude loot boxes constitute gambling and are therefore in violation of California law.
Complainants seek class status, restitution and disgorgement of the revenues wrongfully retained as a result of Apple's allegedly wrongful conduct, an injunction against further violations and court fees.
The lawsuit is the latest development in a long-running debate over loot boxes, in-game purchases and microtransactions. In 2019, a proposed Senate bill called the ""Protecting Children From Abusive Games Act" sought to ban loot boxes, though the statute is not expected to gain traction.
A complaint filed with the U.S. District Court for the Northern District of California alleges Apple is complicit in promoting gambling and addictive behavior by allowing developers to market apps and games with loot boxes on the App Store.
"Not unlike Big Tobacco's Joe Camel' advertising campaign, Apple relies on creating addictive behaviors in kids to generate huge profits for the Company," the complaint reads. "Over the last four years Defendant's App Store games have brought in billions of dollars, even though the vast majority of the games are free to download."
Loot boxes are broadly defined as in-app purchases that grant users rewards, boosts, costumes, skins, weapons, or other special items. Popular in games, loot boxes provide a randomized chance to gain premium items, a mechanic that some closely associate with gambling. Indeed, real money is spent to obtain these special goods, sometimes through an in-game currency system.
Apple is being targeted by the complaint because it profits from in-app purchases.
"A large percentage of Apple's revenues from App Store games come from the in-game purchases of what are known in the gaming industry as loot boxes' or loot crates,'" the lawsuit alleges. "Dozens (if not hundreds) of App Store games rely on some form of Loot Box or similar gambling mechanism to generate billions of dollars, much of it from kids."
Named plaintiff Rebecca Taylor claims her son, "C.T.," spent at least $25 in iTunes gift cards and his parents' money on loot boxes for Supercell's Brawl Stars. C.T. continues to have access to the iPhone and iPad on which Brawl Stars and other "freemium" games are installed. The complaint does not address Apple's parental control and App Store features that restrict minors from purchasing digital content without a parent's permission.
Also mentioned in the complaint are Mario Kart Tour, FIFA Soccer, and Roblox, which along with Brawl Stars constitute some of the most popular games on iOS.
Apple is also dinged for not explicitly noting the inclusion of loot boxes in App Store descriptions and allowing developers to age rate their own products.
"Thus, there is no notice - and no requirement of any notice by Apple - to the parent or the child that a game contains Loot Boxes or other gambling mechanisms," the complaint reads.
In sum, plaintiffs conclude loot boxes constitute gambling and are therefore in violation of California law.
Complainants seek class status, restitution and disgorgement of the revenues wrongfully retained as a result of Apple's allegedly wrongful conduct, an injunction against further violations and court fees.
The lawsuit is the latest development in a long-running debate over loot boxes, in-game purchases and microtransactions. In 2019, a proposed Senate bill called the ""Protecting Children From Abusive Games Act" sought to ban loot boxes, though the statute is not expected to gain traction.
Loot Box Lawsuit by Mikey Campbell on Scribd
Comments
If you end up trusting that "the market" will fix everything, then you will also end up with some type of specialists that will act as agents of those not experienced enough in protecting their own rights within that market; which, simply put, would be the lawyers. But, that same group will of course also turn predatory, and mostly be in it for their own monetary gain; making the "too free" market reach stability at a lower efficiency than one where a democratic government more actively act on behalf of the people.
The important thing to understand here isn't the Apple-specific situation, but rather that companies could do a lot to trick people into "accidentally" doing purchases; which means that legally there needs to be some sort of guidelines as far as what is trickery, and what is a reasonable level of making sure you as a company don't by complacency allow your customers to accidentally make unwanted purchases.
So if Apple make their products to be used by children, and allow some type of purchases to happen in relationship to that, then they end up with a legal obligation to one way or another make sure the parents easily understand how to control such purchases. And "parents" in this context doesn't mean some ideal parents with perfect tech competency, but the type of normal parents of the market that buy Apple products.
I hate this free app, but have to buy loot boxes (or something else) to get anywhere in the game. Words with friends has even taken this on, wish it had a non-cheat mode so I can just play the game with other non-cheaters...I don’t know if someone is beating me because they are good at it or because they use the cheats.
i actually have given bad reviews to games and sent Apple feedback for games you can’t just play but bombard you with purchasing various loot boxes or playing “tournaments” or Scopely is notorious for buying board game brand names and turning them into in-app purchase sheet shows. I want to be able to opt out of anything but my turn notifications, no notifications for anything else, I would pay for an app that would do this instead of being “free” with all this obnoxious b.s. trying to get more and more money out of me. I.E. When scrabble first came to the iPad it was just the board game, sure you had to pay for it, but it was great! Now Scopely bought it and it’s another in-app purchase sheet show.
A few years ago now (wow, time flies) I was interested in a start trek game, I think it was wrath of gems...it was pretty cool until you realize you can only go so far and then you hit a paywall, have to make in-app purchases to get any further with the game, they got me hooked, really hooked, but, I wasn’t going for it...I would have paid money to get the whole experience, but, not this buy this so you can get this to get further on only to have to keep doing that over and over and over.
also, about the same time they started the “free” games, they, (various apps), starting taking the “my turn” list and adding what should be “start a new game with” and putting new players in there to trick you into playing more and more games, I hate this, I have to do a double take every time I look at who’s next to see if it’s actually my turn or if it’s a new person they want me to play...I’ll start new games when I want to, dang it! (It used to be separate sections...my turn, their turn, start a new game, now starting new games is blurred into my turn list.) this is another aspect that should be covered in this lawsuit, it’s another way to keep you playing, keep you addicted to their game!
if no credit/debit card is attached to an account, you can’t make any purchases, in-app or otherwise. I think very few parents will have an Apple ID account that does not have a credit or debit card assigned to it,