Brazilian authorities investigating loot boxes • .net

And potentially ban them altogether.

As Brazilian authorities have investigated controversial microtransactions and accepted a potentially banned request, it seems that yet another country is scrutinizing how loot boxes comply with current legislation.

The inquiry was made in response to a recommendation from the National Association of Child and Adolescent Defense Centers (ANCED), which has filed several proceedings against game companies over the use of loot boxes. ANCED claims that loot boxes are a harmful form of gambling. This is a banned activity in Brazil (via Esports Observer).

The Brazilian website The Enemy has access to legal proceedings involving publisher Garena (known as the mobile battle royale game Free Fire), Activision, Electronic Arts, Riot Games, Nintendo, Konami, Valve, Ubisoft, Tencent, Microsoft, Companies such as Apple reported. , Google, Sony were cited in the proceedings. ANCED seems to be asking you to suspend the Free Fire loot box until its use by children and adolescents is properly evaluated. If not compliant, Garena will be penalized with a daily penalty of $ 4 million (£ 517,000). We are also seeking a $ 1.5 billion (£ 193 million) personal reward from Galena and a $ 1,000 (£ 130) personal reward for each child or adolescent user of the game.

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Prosecutor Louise de Marilac Xavier Dos Passos said this is a good opportunity for the Brazilian judicial system to consider loot boxes and implement measures to protect children (such as the complete removal of loot boxes). I decided that it would be. As a result, no action has yet been taken against the nominated company, but the judiciary will investigate the issue independently of the current Brazilian government. Prosecutors felt that the amount of compensation ANCED requested was a bit far from reality, so it is unlikely that they would be fined that much.

Brazil is not the only country considering introducing loot boxes under current gambling law. Both the Netherlands and Belgium have determined that loot boxes are considered gambling and therefore violate existing gambling laws. Meanwhile, the UK Gambling Commission argues that loot boxes are not counted as gambling unless there is a “cash out” option, which means that Congress must pass a bill to introduce regulations. So far, the DCMS Commission and the House of Lords have argued that loot boxes need to be reclassified as gambling addictions, and recent studies have shown a significant link between loot boxes and gambling addiction. It has become clear and new laws are required.


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